Classical

Financial and Management Accounting - Financial and Management Accounting Objective Type Questions

31:  
There should be a provision in the __ of the company for capitalisation of reserves.
A.

Articles of Association

B.

Prospectus

C.

Memorandum of Association

D.

Both (A) and (B)

 
 

Option: A

Explanation :

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32:  
The cash flow associated with extraordinary items should be classified as arising from
A.

Operating activities

B.

Investing activities

C.

Financing activities

D.

All of the above

 
 

Option: D

Explanation :

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33:  

If depreciation is calculated on the basis of the formula, (n (n + 1))/2 , then which of the following methods is adopted?

A.

Diminishing value method

B.

Annuity method

C.

Sum of years digits method

D.

Sinking fund method

 
 

Option: C

Explanation :

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34:  
The issue of sweat equity shares is authorised by a special resolution passed by the company in the
A.

General meeting

B.

Statutory meeting

C.

Board meeting

D.

None of the above

 
 

Option: A

Explanation :

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35:  
SEBI guidelines require that bonus shares should not dilute the rights of the holders of debentures, convertible fully or partly. Bonus shares reserved to be issued at the time of conversion become part of
A.

Right shares

B.

Sweat equity shares

C.

Potential equity shares

D.

Deferred equity shares

 
 

Option: C

Explanation :

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