A preference share is one
(i) which carries preferential right with respect to payment of dividend at fixed rate
(ii) which carries preferential right with respect to repayment of capital on winding up

(a)

Only (i) is correct

(b)

Only (ii) is correct

(c)

Both (i) and (ii) are correct

(d)

Both (i) and (ii) are incorrect

Which of the following statement is false?

(a)

Issued capital can never be more than the authorised capital

(b)

In case of under subscription, issued capital will be less than the subscribed capital

(c)

Reserve capital can be called at the time of winding up

(d)

Paid up capital is part of called up capital

When shares are issued for purchase of assets, the amount should be credited to

(a)

Vendor’s A/c

(b)

Sundry assets A/c

(c)

Share capital A/c

(d)

Bank A/c

The money raised by issuing shares is called

(a)

Share capital

(b)

Dividend

(c)

Equity capital

(d)

Share application

Profits are distributed among the shareholders in the form of ___________

(a)

shares

(b)

dividends

(c)

both

(d)

none of these

Company is a voluntary association of persons which has separate ___________

(a)

legal entity

(b)

voluntary association

(c)

common seal

(d)

limited liability

The liability of the shareholders of the company is limited to the extent of face value of the shares held by the ___________

(a)

shareholders

(b)

cardholders

(c)

debenture holders

(d)

none of these

Equity shares do not enjoy any ___________

(a)

Equity rights

(b)

Preference rights

(c)

Dividend of rights

(d)

Ordinary shares

Equity shares are also known as

(a)

authorised capital

(b)

issued capital

(c)

subscribed capital

(d)

ordinary shares

Authorised capital is also known as ____________

(a)

paid up capital

(b)

called up capital

(c)

nominal capital

(d)

subscribed capital