Contracts and Accounts MCQ with Answers

Contracts and Accounts MCQ with Answers

Contracts can be described as self-imposed court-enforceable legal obligations that are not contrary to public policy or law. A contract is an agreement wherein the parties to the contract are bound with an obligation or legal duty to do a certain thing or to refrain from doing a certain thing. Download the PDF of Contracts and Accounts MCQ with Answers in high resolution and printable format by using given link below.

An account refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages, to which changes in value are chronologically recorded with debit and credit entries. These entries, referred to as postings, become part of a book of final entry or ledger.

Contracts and Accounts Multiple Choice Question with Answers

Share allotment account is a ——————.

1. personal account
2. Real account
3. Nominal account
4. Impersonal account

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan

1. 2 year
2. 3 years
3. 6 years
4. none of these

The minimum share Application money is ———–.

1. 5% of the face value of shares
2. 10% of the issue price of shares
3. Re. 1 per share
4. 15% of the face value of shares

Premium received on issue of shares is shown on———–.

1. asset side of the balance sheet
2. liability side of the balance sheet
3. credit side of the P&L a/c.
4. debit side of the P & L a/c

Premium on issue of shares can be used for ———–.

1. distribution of dividend
2. writing of f capital losses
3. transferring to general reserve
4. paying fees to directors

Premium received on issue of shares cannot be utilised for ———.

1. for the issue of bonus shares
2. for writing of preliminary expenses
3. for providing premium payable on redemption
4. for distribution of dividend

Section ———–of companies act 1956 deals with the scheme of stock invest

1. 69 to 70
2. 69 to 71
3. 69 to 72
4. 69 to 73

When shares issued at premium which of the following account is credited?

1. Share premium account
2. Share first call account
3. Share allotment account
4. Share forfeited account

Minimum number of members in case of public company is———.

1. 4
2. 5
3. 6
4. 7

Maximum number of members in public limited company is —————.

1. 10
2. 20
3. 50
4. unlimited

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