Commerce Accountancy · Law Legal Studies

Business Organizations and Corporate Governance

1,402 Questions

Business organizations and corporate governance explore company structures, stakeholder responsibilities, and regulatory frameworks under the Companies Act. These commerce topics are essential for Chartered Accountancy, company secretary exams, and banking probationary officer assessments. Practice these questions to master corporate formation, director roles, and business ownership types.

Companies Act 2013 provisionsCorporate stakeholder rolesPrivate limited company rulesDebenture holder rightsCompany incorporation rulesState-owned enterprises

Business Organizations and Corporate Governance Questions

Multiple choice book keeping and accountancy reserve and fund accounting treatment for depreciation meaning and characteristics of provisions provision for depreciation account

Provisions relating to accounts are contained in sections ______ of the Companies Act,2013.

  1. 120-134

  2. 128-137

  3. 205-230

  4. 199-210
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Provision relating to accounts are contained in sections 128-137 of the Companies Act, 2013.

Following is the list of section:

128 - Books of account, etc, to be kept by company
129 -  Financial statement
130 - Reopening of accounts on court's or Tribunal's orders
131 - Voluntary revision of financial statements or Board's report
132 - Constitution of National Financial Reporting Authority
133 - Central Government to prescribe accounting standards
134 - Financial statement, Board's report, etc
135 - Corporate Social Responsibility
136 - Right of member to copies of audited financial statement
137 - Copy of financial statement to be filed with Registrar

Multiple choice social science public health and the government energy and health infectious diseases - transmission and prevention infectious diseases and how to prevent them

Activity/service by ___________  organisation/s is held with a profit motive.

  1. Public

  2. Private

  3. Both public and private

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Private organizations are typically established by individuals or groups with the primary objective of generating profit. In contrast, public organizations are government-run and focus on public service rather than profit.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Discount on issue of debenture A/c is to be written off ___________.

  1. immediately

  2. within 3-4 years

  3. over the tenure of the debenture

  4. all the three alternatives are available to the company
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Discount on the issue of debentures is a capital loss that is amortized over the life of the debentures, matching the expense to the period the company benefits from the borrowed funds.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Loss on issue of Debentures is generally written off in __________.

  1. 10 years

  2. 8 years

  3. over the period of debentures

  4. 15 years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Loss on issue of debentures is a capital loss that should be amortized over the tenure of the debentures to match the expense with the benefit received.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

The document inviting offers from public to subscribe for the debenture or shares or deposits of a company is a

  1. Share certificate

  2. Articles of association

  3. Fixed deposit receipt

  4. Prospectus
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A prospectus is the formal legal document issued by a company that invites the public to subscribe for its shares or debentures.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Interest on debenture is __________.

  1. An Appropriation of Profit

  2. A Charged Against Profit

  3. An Adjustment of Profit

  4. None of the Above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debenture are financial instrument which carries a certain percentage of interest. Debentures are like other debts. Interest paid on debenture is an expense and charged to profit & loss account.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Statement (A): Discount on issue of debentures represents capital loss.
Statement (B): The amount of such discount cannot be written off annually

  1. Both (A) and (B) are true.

  2. Both (A) and (B) are false.

  3. (A) is correct but (B) is false

  4. (B) is correct but (A) is false
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement A is correct because discount on issue is a capital loss. Statement B is false because the discount is typically written off over the life of the debentures.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

For creating Capital Redemption Reserve _______________ is passed.

  1. Profit or loss a/c Dr, General Reserve Dr to Capital Redemption Reserve Cr

  2. Goodwill a/c Dr to Capital Redemption Reserve a/c Cr

  3. Capital Redemption Reserve A/c Dr. to Profit and loss A/c, General Reserve A/c Dr.

  4. Capital Reserve Dr. to Capital Redemption Reserve
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Capital Redemption Reserve is created by transferring profits from the Profit and Loss account or General Reserve to the reserve account.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

A debenture is said to be issued at par when the issue price is ________ the face price.

  1. more than

  2. less than

  3. equal to

  4. double

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A debenture is issued at par when the amount paid by the investor is exactly equal to the face value of the debenture.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Premium on issue of debentures can be utilized for writing off  _______.

  1. discount on issue of debenture/shares

  2. preliminary expenses

  3. goodwill/patent

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Premium on issue of debentures (or securities premium) can be used for various purposes, including writing off preliminary expenses, discount on issue, or goodwill.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Discount on issue of debenture is shown in balance sheet as ___________.

  1. miscellaneous expenses

  2. goodwill

  3. claims receivable

  4. reserve capital
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Discount on issue of debentures is treated as a deferred revenue expenditure and is shown under miscellaneous expenses in the balance sheet until fully written off.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

Discount on issue of debenture is a ______.

  1. capital loss

  2. revenue loss

  3. financial loss

  4. speculative loss
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A discount on the issue of debentures represents a cost incurred by the company to raise capital. Since this is a non-recurring loss related to the capital structure, it is classified as a capital loss.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

A debenture is said to be issued at premium when the issue price is ________ the face price.

  1. more than

  2. less than

  3. equal to

  4. double

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A debenture is issued at a premium when the amount received from the investor is greater than the nominal or face value of the debenture.