Financial accounting is the process of recording, summarizing, and reporting a company's business transactions through financial statements. These statements are: (1) the income statement, (2) the balance sheet, (3) the cash flow statement, and (4) the statement of retained earnings.
MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE & COMMERCE
Class- TYBAF
SEMESTER -V
Subject: Financial Accounting
SEM- I (ATKT)
1. According to the Companies Act the underwriting commission on shares should not exceed
a) 5%
b) 2.5%
c) 10%
d) 1%
2. The underwriting commission is calculated
a) Net Liability of the share value
b) Firm Underwriting value of the share
c) Marked Application of the share value
d) Issue price of the shares underwritten
3. Unmarked applications refer to
a) Firm Underwriting
b) Applications issued by the company
c) Applications bearing the stamp of underwriter
d) Applications from the public received directly by the company without bearing any stamp of
underwriter
4. When all the shares are underwritten by the underwriter, it is called
a) Firm Underwriting
b) Partial Underwriting
c) Complete Underwriting
d) None of the above
5. Marked Applications refer to
a. Applications bearing the seal of underwriter
b. Applications bearing the signature of applicants
c. Application issued by company
d. None of the above
,MAHARSHI DAYANAND COLLEGE FA-V TYBAF
6. R Ltd. Issued a debenture of Rs.100 each at Rs.90. the underwriting commission will be paid on
a. Rs.100
b. Rs.95
c. R.105
d. Rs.90
7. M Ltd. Issued shares at the face value of Rs.100 with a premium of Rs.20 per share. The underwriting
commission will be calculated on
a. Rs.100
b. Rs.90
c. Rs.80
d. Rs.120
8. The underwriter is entitled to claim remuneration on
a. The issue price of shares underwritten
b. The face value of shares actually purchased
c. The face value of shares not purchased by him
d. None of the above
9. If the whole of the issue of shares or debentures is underwritten it is known as
a. Partial Underwriting
b. Sole Underwriting
c. Complete or Full Underwriting
d. None of the above
10. If the part of the issue of shares or debentures is underwritten, it is termed as
a. Partial Underwriting
b. Complete Underwriting
c. Firm Underwriting
d. None of the above
11. When an underwriter agrees to buy a definite number of shares in addition to unsubscribed shares,
it is termed as
a. Partial Underwriting
,MAHARSHI DAYANAND COLLEGE FA-V TYBAF
b. Firm Underwriting
c. Complete Underwriting
d. None of above
12. K Ltd. Issued shares of Rs.1,000 each at Rs.950. The underwriting commission will be paid on
a. Rs.1,000
b. Rs.950
c. Rs.1,950
d. Rs.50
13. Person who agrees to buy securities of a body corporate in case they are not subscribed by the
public is known as
a. Underwriter
b. Registrar
c. Transfer Agent
d. Broker
14. A company should collect _____ of amount of the shares issued as minimum subscription.
a. 90%
b. 30%
c. 10%
d. 100%
15. In case of Debentures the underwriting commission can not exceed
a. 2.5% of issue price
b. 7.5% of issue price
c. 5% of issue price
d. 10% of issue price
16. The time limit for collection of minimum subscription by the company is
a. 15 days
b. 21 days
c. 7 days
d. 5 days
, MAHARSHI DAYANAND COLLEGE FA-V TYBAF
17. When the issue is underwritten by two or more underwriters it is called as
a. Joint underwriting
b. Sole underwriting
c. Partial Underwriting
d. Firm Underwriting
18. Underwriting commission is payable to underwriters by
a. The company
b. The Government
c. The Registrar
d. The shareholders
19. In order to spread the risk of under-subscription, the principal underwriters may appoint
a. Broker
b. Agent
c. Transfer Agent
d. Sub-Underwriter
20. ____ means an agreement to subscribe to the Securities of a body corporate when the existing
shareholders of such body corporate or the public do not subscribe to the securities offered to them.
a. Contract
b. Brokerage
c. Underwriting
d. None of the above
21. The provisions of buy back of shares are specified in sections ____ of the Companies Act.
a. 68
b. 75
c. 78
d. 80
22. Maximum buy back in a year can be ____
a. 10 %
b. 20 %
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