A company declares dividend at 10% on equity shares of ₹10 each. On 5,000 shares, dividend amount is: MCQ with Answer and Explanation

A company declares dividend at 10% on equity shares of ₹10 each. On 5,000 shares, dividend amount is:
A. ₹5,000
B. ₹10,000
C. ₹500
D. ₹50,000
Answer: Option A
Solution (By JKSSB Mock Tests)
Dividend = 10% of (5,000 * 10) = 10% of 50,000 = ₹5,000.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Suspense Account' is opened when:
A. An asset is sold
B. Trial balance does not agree
C. A fraud is detected
D. Final accounts are prepared

Correct Answer: Option B


Explanation:
It holds the difference in trial balance until errors are located.

Question #2
The 'Rotation of Audit Partners' for listed companies is required every:
A. 10 years
B. 5 years
C. 7 years (as per Companies Act 2013, audit firm rotation for certain companies, partner rotation for listed companies)
D. No rotation

Correct Answer: Option C


Explanation:
Companies Act 2013 mandates partner rotation for listed companies.

Question #3
S1: In standard costing, the 'Material Mix Variance' arises when the actual mix of materials used differs from the standard mix. S2: If the actual mix is changed due to the unavailability of a specific material, the variance is calculated using the original standard mix. Which statement(s) is/are correct?
A. S1 only
B. Both S1 and S2
C. Neither S1 nor S2
D. S2 only

Correct Answer: Option A


Explanation:
S1 is correct. S2 is incorrect because when the actual mix is altered due to unavailability, the Material Mix Variance must be calculated using the Revised Standard Mix, not the original standard mix.