Disclosure of Share Capital

Q.

Is increase in share capital due to bonus issue shown in cash flow statement?

Q.

What is a 'Convertible Debenture'?

Q.

Underwriting commission paid on issue of debentures will appear in

Q.

Amount of forfeited shares is shown by ________ to subscribed capital.

1. adding

2. subtracting

3. reducing

4. none of these

Q.

What is meant by a 'Share'? Give any two differences between 'Preference Shares' and 'Equity Shares'.

Q. When preference shares are redeemed out of profits, such profits must be_____.

1. Capital profit
2. Profits which would otherwise available for dividend
3. Revaluation profit
4. (B) or (C)

Q. Select the most appropriate answer from the alternatives given below and rewrite the sentence :

When shares are forfeited, share capital account is ______________.
a) debited
b) credited
c) adjusted
d) none of these

Q. Objective Type Question :
Answer in one Sentence only :

What is meant by convertible preference share?

Q. State, whether the following statements are True or False.

Equity shareholder enjoys preferential rights.

Q. Objective type questions.
Answer in are sentence only.

What is a ‘Convertible Debenture’?

Q.

Disclosures relating to share capital are to be given in ___.

1. Balance sheet

2. Notes to accounts

3. Statement of profit & loss

4. None of these

Q.

Do we separately disclose equity and preference shares issued?

1. No

2. Yes

3. Partially Yes

4. None of these

Q.

WHAT IS THE OTHER NAME OF INCOME AND EXPENDITURE ACCOUNT?

Q. The authorised capital disclosure is shown in notes to accounts.

1. True
2. False

Q. A company cannot issue redeemable preference shares for a period exceeding _____________.

1. 5 years
2. 10 years
3. 15 years
4. 20 years

Q. On redemption of preference shares money cannot be arranged (for payment to shareholders) from ________________.

1. issue of new shares
2. sale of investment
3. sale of fixed assets
4. bank loan or overdraft

Q. State, whether the following statements are True or False.

A public company forfeits share on non-payment of final call only.

Q. What is meant by a 'Share'? Given any two difference between 'Preference Shares' and 'Equity Shares'.

Q. Disclosures relating to share capital are to be given in notes to accounts.

1. False
2. True

Q. Amount of forfeited shares is shown by subtracting it to subscribed capital.

1. False
2. True

Q.

Share capital is shown on which side of balance sheet in company`s accounts?

1. None of these

2. Either Asset side or Liabilities side

3. Liabilities side

4. Asset side