The total capital a company is authorized to issue as per its memorandum is called:
a) Issued Capital
b) Subscribed Capital
c) Authorized Capital
d) Paid-up Capital
Which type of share carries a fixed dividend but no voting rights?
a) Equity Shares
b) Preference Shares
c) Bonus Shares
d) Treasury Shares
The part of issued capital that has been subscribed by the public is called:
a) Called-up Capital
b) Subscribed Capital
c) Paid-up Capital
d) Reserve Capital
Which financial statement shows a company’s share capital structure?
a) Balance Sheet
b) Income Statement
c) Cash Flow Statement
d) Notes to Accounts
When a company issues shares to existing shareholders at a discounted price, it is called:
a) Bonus Issue
b) Rights Issue
c) Private Placement
d) Public Offering
Which of the following represents the actual amount paid by shareholders on issued shares?
a) Subscribed Capital
b) Paid-up Capital
c) Authorized Capital
d) Reserve Capital
The portion of share capital that is not yet called by the company is called:
a) Reserve Capital
b) Uncalled Capital
c) Issued Capital
d) Paid-up Capital
Bonus shares are issued from:
a) Paid-up Capital
b) Reserves and Surplus
c) Secured Loans
d) Debentures
Shares issued at a price higher than the face value are called:
a) Discounted Shares
b) Premium Shares
c) Bonus Shares
d) Forfeited Shares
Which account is credited when a company receives share application money?
a) Share Capital Account
b) Share Application Account
c) Securities Premium Account
d) Reserve Account
A company cannot issue shares at a discount except in the case of:
a) Bonus Shares
b) Rights Issue
c) Sweat Equity Shares
d) Preference Shares
The repurchase of its own shares by a company is called:
a) Rights Issue
b) Buyback of Shares
c) Bonus Issue
d) Fresh Issue
Which capital represents the maximum amount a company can raise from shareholders?
a) Paid-up Capital
b) Issued Capital
c) Authorized Capital
d) Reserve Capital
A company’s liability on partly paid shares is limited to:
a) Face Value
b) Called-up Amount
c) Uncalled Amount
d) Paid-up Amount
The capital that remains uncalled until liquidation is called:
a) Reserve Capital
b) Paid-up Capital
c) Issued Capital
d) Subscribed Capital
Which section of the Balance Sheet shows share capital?
a) Current Liabilities
b) Non-Current Assets
c) Equity & Liabilities
d) Fixed Assets
A company can issue bonus shares only if it has sufficient:
a) Loans
b) Reserves
c) Unissued Capital
d) Creditors
A preference share is called cumulative if:
a) It has voting rights
b) It carries a fixed dividend
c) Unpaid dividends accumulate and are paid later
d) It has a maturity date
Share premium amount is recorded in:
a) General Reserve
b) Securities Premium Account
c) Capital Reserve
d) Share Capital Account
The process of converting physical share certificates into electronic form is called:
a) Capitalization
b) Dematerialization
c) Underwriting
d) Securitization
If a company issues shares at less than face value, it is called:
a) Issue at Premium
b) Issue at Discount
c) Rights Issue
d) Private Placement
When shareholders fail to pay the allotment money, the shares may be:
a) Reissued
b) Forfeited
c) Discounted
d) Cancelled
Which of the following reduces the number of outstanding shares?
a) Rights Issue
b) Share Buyback
c) Bonus Issue
d) Fresh Issue
What is the primary purpose of issuing shares?
a) Reduce liabilities
b) Increase expenses
c) Raise capital
d) Pay dividends
Convertible preference shares can be converted into:
a) Debentures
b) Fixed Deposits
c) Equity Shares
d) Bonds
Shareholders’ funds consist of:
a) Share Capital & Reserves
b) Debentures & Loans
c) Creditors & Liabilities
d) Fixed Assets & Inventory
Which of the following represents a permanent source of capital for a company?
a) Equity Shares
b) Preference Shares
c) Debentures
d) Bank Loans
Which of the following affects the issued share capital of a company?
a) Declaring dividends
b) Issuing new shares
c) Repaying loans
d) Paying salaries
Companies issue preference shares to:
a) Avoid debt financing
b) Gain full voting rights
c) Reduce reserves
d) Avoid tax payments
