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St. Francis Xavier's Higher Secondary School, Siolim, Bardez, Goa., Class 12 - Accountancy, MCQ on Accounting for Share Capital, , 1), , Swarna Limited invited applications for subscription of 10,000 Equity, shares @ Rs.100 each. Applications were received for 25,000 shares., This situation is called as ________., a) Oversubscription of shares, b) Pro rata allotment, c) Full Allotment of shares, d) Under subscription of shares, , 2), , Which of the following is not true about a company?, a) Company is a Natural Person, b) Company has a common seal, c) Company has a separate entity, d) Company is an Artificial Person, , 3), , Which of the following refers to the amount the shareholders fail to pay, actually called up by the directors?, a) Issued Capital, b) Called up Capital, c) Calls –in -arrears, d) Reserve Capital, , 4), , Which capital should be stated in the Memorandum of Association of a company?, a) Subscribed capital, b) Issued Capital, c) Authorised Capital, d) Paid-up capital

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5), , When shares issued are 10,000 but applied shares are 8,000 then it is a case of:, a) None of the above, b) pro-rata, c) under subscription, d) Over-subscription, , 6), , That part of capital which is uncalled capital of the company and can be, called up only in the event of its winding up of a company is ________., a) Capital reserve, b) Nominal capital, c) Issued capital, d) Reserve capital, , 7), , What is the alternative name of Authorized share capital?, a) Paid-up capital, b) Issued capital, c) Subscribed capital, d) Nominal Capital, , 8), , According to Companies Act company cannot issue its share at ________., a) Par, b) Discount, c) Both Discount and Par, d) Premium, , 9), , Which of the following statement is incorrect?, a) Sweat Equity shares can be issued at a discount, b) Shares can be issued to the public at discount, c) The company can issue shares other than cash, d) There is no limit for securities premium

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10) ________ shares are issued by a company at discount to its employees or directors, for their hard work and dedication towards the company., a) Bonus Shares, b) Preference Shares, c) Employees Stock Option Scheme, d) Sweat Equity Shares