Uses of Securities Premium

Q. What are the uses of securities premium?

Q.

Securities premium account cannot be utilized for _________.

1. Proceeds of fresh issue of shares

2. Securities premium on fresh issue of shares

3. Dividend equalization reserve

4. General Reserve

Q.

Idenitfy out of the following transactions that are shown as Financing Activity:

1. Repayment of loan taken
2. Proceeds from issue of shares
3. Debentures subscribed by the company
4. Redemption of preference share
5. Interest paid
6. Dividend paid
7. Issue of bonus shares

Q.

Securities premium can be used _______

1. None of the above

2. Not sure

3. No

4. Yes

Q.

Can securities premium be used as working capital?

1. None of the above

2. Not sure

3. No

4. Yes

Q.

Securities premium cannnot be applied for ?

1. None of these

2. Buy back of own shares

3. Purchase of fixed assets

4. Issue of fully paid bonus shares

Q. Securities Premium can be used by the company :

1. To Adjust trading Loss
2. To adjust Loss on revaluation of Assets
3. To Issue fully paid Bonus shares
4. To Pay dividend

Q.

Balance in securities premium account _______.

1. None of the above

2. Not sure

3. No

4. Yes