alleryA company is best described as an artificial person created by:
- a partnership deed
- law
- the stock exchange
- a single individual
Show answer and solution
Correct answer: B. law
A company is an artificial person created by law.
AP Intermediate 2nd Year Financial Accounting & Debentures — practice questions
Explore 85 free Financial Accounting & Debentures questions in AP Intermediate 2nd Year Accountancy. Open each question or exercise to read its content, reference answers and available explanation.
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Showing questions 1–30 of 85.
A company is best described as an artificial person created by:Read the answer and worked solution →The maximum amount of capital a company is authorised to raise, as stated in its Memorandum, is the:Read the answer and worked solution →That part of the issued capital which the public has agreed to subscribe is the:Read the answer and worked solution →The portion of the subscribed capital that the company has asked shareholders to pay is the:Read the answer and worked solution →Shares that carry a preferential right to dividend at a fixed rate are called:Read the answer and worked solution →Shares that get dividend only after preference shareholders and carry voting rights are:Read the answer and worked solution →When a share of face value ₹10 is issued for ₹10, it is said to be issued:Read the answer and worked solution →When a share of face value ₹10 is issued for ₹13, the extra ₹3 is the:Read the answer and worked solution →Cancelling the shares of a member who fails to pay the call money is known as:Read the answer and worked solution →A debenture represents a:Read the answer and worked solution →Holders of equity shares are regarded as the ___ of the company:Read the answer and worked solution →If applications received exceed the number of shares offered, the issue is said to be:Read the answer and worked solution →The liability of the shareholders of a company limited by shares is limited to:Read the answer and worked solution →The financial statements of a company chiefly comprise the Balance Sheet and the:Read the answer and worked solution →The Balance Sheet of a company shows its financial:Read the answer and worked solution →As per Schedule III of the Companies Act, the Balance Sheet is prepared in the:Read the answer and worked solution →Assets that are expected to be converted into cash within twelve months are classified as:Read the answer and worked solution →Obligations that are due to be paid within twelve months are classified as:Read the answer and worked solution →Reserves and surplus of a company are shown under the head:Read the answer and worked solution →Plant, machinery and buildings of a company are classified as:Read the answer and worked solution →Trade payables (creditors) of a company are an example of:Read the answer and worked solution →Inventories and trade receivables of a company are examples of:Read the answer and worked solution →The statement that shows the revenue earned and expenses incurred to arrive at profit or loss is the:Read the answer and worked solution →Financial statements are prepared mainly to help ___ make economic decisions:Read the answer and worked solution →A key limitation of financial statements is that they are generally based on:Read the answer and worked solution →In a company's Balance Sheet, the total of the 'Equity and Liabilities' side must equal the total of the:Read the answer and worked solution →Pop the stages of share capitalRead the answer and worked solution →Match the kind of capitalRead the answer and worked solution →Order the capital ladderRead the answer and worked solution →True or false about share capitalRead the answer and worked solution →
Worked practice questions
The maximum amount of capital a company is authorised to raise, as stated in its Memorandum, is the:
- Reserve Capital
- Authorised (Registered) Capital
- Paid-up Capital
- Called-up Capital
Show answer and solution
Correct answer: B. Authorised (Registered) Capital
Authorised (registered/nominal) capital is the maximum stated in the Memorandum.
That part of the issued capital which the public has agreed to subscribe is the:
- Subscribed Capital
- Authorised Capital
- Nominal Capital
- Reserve Capital
Show answer and solution
Correct answer: A. Subscribed Capital
Subscribed capital is the part of issued capital the public agrees to take.
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