'Securities Premium' can be used for: MCQ with Answer and Explanation

Question

Share Report Error

'Securities Premium' can be used for:

A. Purchase of stock

B. Distribution of dividend

C. Writing off preliminary expenses

D. Payment of salary

Answer: Option C

Solution (By JKSSB Mock Tests)

Securities premium can be used for purposes specified in Section 52 of Companies Act, like issue of bonus shares, writing off preliminary expenses, etc.

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

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Question #1

The maximum rate of IGST under GST Act can be:

A. 14%

B. 20%

C. 28%

D. 40%

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Correct Answer: Option D

Explanation:
IGST rate is the sum of CGST and SGST rates; since CGST/SGST can go up to 20% each, IGST can be up to 40%.

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

Question #2

Capital loss can be carried forward for:

A. 16 years

B. Indefinitely

C. 4 years

D. 8 years

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Correct Answer: Option D

Explanation:
Capital losses (short-term and long-term) can be carried forward for 8 years.

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

Question #3

What is the primary objective of financial management?

A. Maximizing market share

B. Maximizing shareholder wealth

C. Maximizing profits

D. Maximizing sales

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Correct Answer: Option B

Explanation:
The primary objective of financial management is to maximize the wealth of shareholders, reflected in the market price of shares.

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

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