Corporate Accounting - True or false
This page describes a Qedoc learning module or quiz entitled "Corporate Accounting - True or false". You can download the module from this page to put on your computer. You can also launch the module straight off the web using the launch quiz link on the right-hand side of this page. Another way to access this quiz is to install the Qedoc Quiz Player and bring up its directory of downloadable quizzes. Whichever way you choose to use it, it's free.
Corporate Accounting in India.
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- An amount equal to face value of preference shares to be redeemed out of divisible profits must be transferred to general reserve.
- Premium payable on redemption of prefrernce shares must be debited to securities premium account only.
- A debit to equity share capital account decreases the available capital balance on their account.
- Capital redemption reserve acount can not be utilised for issuing fuly paid bonus shares.
- Capital redemption reserve account can be utilised in writing off preliminary expenses.
- Reserve of a company always represents the amount which the company can readily spend.
- Redemption of preference shares cannot be made out of fresh issue of debentures.
- Joint stock company can adopt single entry system of accounting.
- A company can issue irredeemable preference shares.
- A company can redeem its preference share capital.
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