Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting – II (112): - Question Paper

(a)
0.039
(b)
0.078
(c)
0.127
(d)
0.156
(e)
0.254.
(2 marks)
< ans >
23.
The maximum amount beyond which a company is not allowed to raise funds, byissue of shares is
(a)
Issued capital
(b)
Reserve capital
(c)
Nominal capital
(d)
Subscribed capital
(e)
Paid-up capital.
(1 mark)
< ans >
24.
The application money received on shares is treated as a liability and not treated asshare capital until allotment of shares is approved by the
(a)
Board of Directors
(b)
Registrar of Companies
(c)
Central Government
(d)
Share holders
(e)
National Company legal regulations Tribunal.
(1 mark)
< ans >
25.
The equity shareholders are entitled to
(a)
One vote for every equity share held
(b)
Eventually receive back the money paid against shares during the life time of company
(c)
Guaranteed dividends
(d)
Guaranteed fixed rate of return
(e)
Cumulation of dividends.
(1 mark)
< ans >
26.
Which of the subsequent statements is actual regarding Calls in Arrears?
(a)
Calls in arrear is that part of paid up capital remaining unpaid
(b)
It is shown in the Balance Sheet until the defaulted shares are forfeited
(c)
The rate of interest chargeable on calls in arrear is 6% p.a if a company adopts table A
(d)
Charging of interest on calls in arrear need not be permitted by the Articles of Association
(e)
It is shown in the Balance Sheet under Current Assets.
(1 mark)
< ans >
27.
Swiss Ltd. issued 40,000 equity shares of Rs.10 every at par. The entire problem wasunderwritten as follows:
Abhinav – 24,000 shares (Firm underwriting 3,200 shares)
Bhavan – 10,000 shares (Firm underwriting 4,000 shares)
Charan – 6,000 shares (Firm underwriting 1,200 shares)
The total applications including firm underwriting were for 28,400 shares. The marked applications were as under:
Abhinav – 7,200 shares
Bhavan – 9,000 shares
Charan – 3,200 shares
The underwriting contract provides that credit for unmarked applications be provided to the underwriters in proportion to the shares underwritten.
The credit to Charan in respect of unmarked applications is
(a)
1,200 shares
(b)
1,350 shares
(c)
2,250 shares
(d)
4,800 shares
(e)
2,400 shares.
(2 marks)
< ans >
28.
The process of stock split outcomes in
(a)
An increase in the number of shares outstanding along with an increase in the total share capital
(b)
A reduce in par value per share

Earning:   Approval pending.