MCQ for CA Foundation Accounting Chapter 10 COMPANY ACCOUNTS

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 1 - Principal and Practice of Accounting - Chapter CHAPTER 10: COMPANY ACCOUNTS - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1  In a Government Company, the holding of the Central Government in paid-up capital should not be less than

  1. 25%
  2. 50%
  3. 51%

Answer: 3

Q:2  Which of the following statement is true in case of a Foreign Company?

  1. A Company incorporated in India and has place of business outside India.
  2. A Company incorporated outside India and has a place of business in India.
  3. A Company incorporated in India and has a place of business in India.

Answer: 2

Q:3  Dividends are usually paid as a percentage of ______.

  1. Authorized share capital
  2. Net profit
  3. Paid-up capital

Answer: 3

Q:4  As per the SEBI guidelines, on issue of shares, the application money should not be less than 

  1. 5% of the nominal value of shares
  2. 5% of the issue price of shares
  3. 0% of the issue price of shares

Answer: 3

Q:5  When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.

  1. Credit Debentures A/c and debit Cash A/c.
  2. Debit Debenture suspense A/c and credit Cash A/c.
  3. Debit Debenture suspense A/c and credit Debentures A/c.

Answer: 3

Q:6  When debentures are redeemable at different dates, the total amount of discount on issue of debentures should be written off

  1. Every year by applying the sum of the year’s digit method
  2. Every year by applying the straight line method
  3. To profit and loss account in full in the year of final or last redemption

Answer: 1

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