alleryStart learning →A 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.
Class 12 Commerce Accounting for Share Capital — practice questions
Explore 13 free Accounting for Share Capital questions in Class 12 Commerce Accountancy. Open each question or exercise to read its content, reference answers and available explanation.
Practise Accounting for Share Capital with Quill →Accounting for Share Capital questions and exercises with answers
Showing questions 1–13 of 13.
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 →
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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