Classical

Financial and Management Accounting - Financial and Management Accounting Practice Questions

36:  
The power to forfeit shares must be provided in the
A.
Articles of Association of the company as the Companies Act does not contain any provision regarding forfeiture of shares.
B.

Memorandum of Association

C.

Registrar of Companies

D.

Company Law Board.

 
 

Option: A

Explanation :


37:  
Income and Expenditure Account is prepared in non-trading concerns in lieu of
A.

Manufacturing account

B.

Profit and loss account

C.

Trading account

D.

Cash book

 
 

Option: B

Explanation :


38:  
Which of the following statements about goodwill is not correct?
A.

It is an intangible asset

B.

It is not visible but it subject to fluctuations

C.

It becomes obsolete

D.

It does not become obsolete.

 
 

Option: C

Explanation :


39:  

Public limited companies cannot issue

A.

Preference shares

B.

Deferred shares

C.

Equity shares

D.

Sweat equity shares

 
 

Option: B

Explanation :


40:  
If forfeited shares are reissued at a discount then the amount of discount should not exceed the
A.
Actual amount received on forfeited shares
B.
Original discount on reissued shares, if any
C.

10% of face value of shares

D.

Total amount of (A) and (B).

 
 

Option: D

Explanation :




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