'Bonus Shares' are issued by: MCQ with Answer and Explanation

Question

Share Report Error

'Bonus Shares' are issued by:

A. Capitalizing reserves

B. Fresh issue to public

C. Private placement

D. Rights issue

Answer: Option A

Solution (By JKSSB Mock Tests)

Bonus shares are issued to existing shareholders without consideration, by capitalizing reserves.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Share Report

Calls-in-arrears is shown in Balance Sheet as:

A. Current asset

B. Addition to share capital

C. Deduction from share capital

D. Current liability

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Correct Answer: Option C

Explanation:
Calls-in-arrears represents unpaid amount on shares, deducted from called-up capital in Balance Sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Share Report

The 'Tax Residency' of an individual in India is determined based on:

A. Age

B. Place of birth

C. Number of days of stay in India

D. Citizenship

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Correct Answer: Option C

Explanation:
Residential status under Income Tax Act is based on physical presence in India.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Share Report

Which standard ensures consistency in classifying cash flows from operating, investing, and financing activities in India?

A. Ind AS 1

B. Ind AS 10

C. Ind AS 7

D. Ind AS 2

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Correct Answer: Option C

Explanation:
Ind AS 7 (equivalent to IAS 7) deals specifically with the preparation and presentation of the Statement of Cash Flows.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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