2nd Year Principles of Accounting Chapter 4 TestAccounts of Joint Stock Companies

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. The remuneration which is paid by company to underwriter is called:

   1. Commission

   2. Del-Credit commission

   3. Overriding commission

   4. Under-writing commission

2. It is that portion of subscribed capital which has been called up by the company:

   1. Called up capital

   2. Paid up capital

   3. Subscribed capital

   4. Issued capital

3. Premium on issue of shares is shown on:

   1. Debit side of trading account

   2. Debit side of profit and loss account

   3. Asset side of balance sheet

   4. Liability side of balance sheet

4. Shareholders are the:

   1. Owners

   2. Debtors

   3. Creditors

   4. Promoters

5. This is the principle form of company:

   1. Company limited by shares

   2. Company limited by guarantee

   3. Unlimited company

   4. Association not for profit

6. Formation of a public limited company is based on:

   1. Promotion

   2. Incorporation

   3. Commencement of business

   4. All of these

7. The debentures which do not carry any charge on the assets of the company are called:

   1. Naked debentures

   2. Mortgage debentures

   3. Secured debentures

   4. None of these

8. The value of shares according to books of accounts of the company:

   1. Book value

   2. Par value

   3. Nominal value

   4. Sale value

9. He gives the guarantee for shares and debentures offered to public:

   1. Director

   2.  Promoter

   3. Underwriter

   4. Over writer

10. When shares are issued at a price which is less than its par value it is said that it has been issued at:

    1. Face value

    2. Par value

    3. Discount

    4. Premium