Contracts and Accounts MCQ with Answers PDF

Contracts and Accounts MCQ with Answers

Contracts and Accounts MCQ with Answers is a vital resource to help you understand legal obligations and accounting principles. A contract refers to self-imposed legal obligations that can be enforced by the court, ensuring both parties fulfill certain duties. Download the PDF of Contracts and Accounts MCQ with Answers in high resolution and printable format using the link below.

Understanding Contracts and Accounts

An account represents a collection of assets, liabilities, income, expenses, and equity. These are recorded on individual ledger pages where changes in value are chronologically noted with debit and credit entries. These entries, known as postings, become integral to a book of final entry or ledger.

Contracts and Accounts Multiple Choice Question with Answers

Here are some multiple-choice questions to test your understanding:

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 less than:

1. 2 years
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 the issue of shares can be used for ———–.

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

Premium received on the issue of shares cannot be utilized for ———.

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

Section ———–of the Companies Act 1956 deals with the scheme of stock investment:

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

When shares are issued at a premium, which of the following accounts is credited?

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

The minimum number of members in the case of a public company is———.

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

The maximum number of members in a public limited company is —————.

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

You can download the Contracts and Accounts MCQ in PDF format using the link given below.

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