alleryStart learning →A sinking fund makes a bond:
- Less risky
- More speculative
- Irredeemable
- Convertible
Show answer and solution
Correct answer: A. Less risky
Setting aside money for repayment lowers default risk and the coupon demanded.
CA Foundation Company Accounts — practice questions — page 3
Explore 90 free Company Accounts questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.
Practise Company Accounts with Quill →Company Accounts questions and exercises with answers
Showing questions 61–90 of 90.
A sinking fund makes a bond:Read the answer and worked solution →Debentures of Rs 10,00,000 are issued at 5 percent discount. Discount allowed is:Read the answer and worked solution →Debentures of Rs 2,00,000 are redeemed at 10 percent premium. Cash payable is:Read the answer and worked solution →9% debentures of Rs 5,00,000 are outstanding. Interest for six months is:Read the answer and worked solution →Buy-back is limited to what share of paid-up capital and free reserves?Read the answer and worked solution →Paid-up capital Rs 40 lakh and free reserves Rs 60 lakh. Maximum buy-back is:Read the answer and worked solution →A Board resolution alone can authorise a buy-back of up to how much of equity and free reserves?Read the answer and worked solution →After buy-back, total debt must not exceed how many times paid-up capital plus free reserves?Read the answer and worked solution →Shares eligible for buy-back must be:Read the answer and worked solution →A buy-back must be completed within how long of passing the special resolution?Read the answer and worked solution →The next buy-back offer is not allowed within what time of closure of the last one?Read the answer and worked solution →On buy-back from free reserves, a sum equal to what is moved to CRR?Read the answer and worked solution →20,000 shares of Rs 10 are bought back at Rs 15 from free reserves. Transfer to CRR is:Read the answer and worked solution →After a default is remedied, buy-back is allowed once how long has lapsed?Read the answer and worked solution →Shares in a public offer cannot be allotted until what is subscribed?Read the answer and worked solution →Application money from the public must be kept in a separate account at a:Read the answer and worked solution →Before a public offer, a company must seek permission at a:Read the answer and worked solution →Commission on subscription to its securities may be paid by the company to:Read the answer and worked solution →Shares authorised, issued and held by the company itself are called:Read the answer and worked solution →A firm has 8,00,000 outstanding and 1,00,000 treasury shares. Issued shares are:Read the answer and worked solution →A share repurchase is the reacquisition by a company of:Read the answer and worked solution →If profits stay the same, a buy-back tends to raise which measure?Read the answer and worked solution →A cumulative preference share means unpaid dividend will:Read the answer and worked solution →Preference shares usually rank for dividend payment:Read the answer and worked solution →Non-cumulative preference dividends, if unpaid in a year:Read the answer and worked solution →Convertible preference shares can be exchanged by holders for:Read the answer and worked solution →Most preference shares carry which voting position?Read the answer and worked solution →On liquidation, a preference share's claim is relative to common stock:Read the answer and worked solution →Putable preference shares let the holder, in some conditions, to:Read the answer and worked solution →Investors were historically given what as evidence of share ownership?Read the answer and worked solution →
Worked practice questions
Debentures of Rs 10,00,000 are issued at 5 percent discount. Discount allowed is:
- Rs 5,000
- Rs 50,000
- Rs 5,00,000
- Rs 1,00,000
Show answer and solution
Correct answer: B. Rs 50,000
Five percent of Rs 10,00,000 is Rs 50,000, which is the discount on issue.
Debentures of Rs 2,00,000 are redeemed at 10 percent premium. Cash payable is:
- Rs 1,80,000
- Rs 2,00,000
- Rs 2,20,000
- Rs 20,000
Show answer and solution
Correct answer: C. Rs 2,20,000
Premium is Rs 20,000, so redemption costs 2,00,000 + 20,000 = Rs 2,20,000.
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