The 'Rights Issue' is offered to: MCQ with Answer and Explanation

Question

Share Report Error

The 'Rights Issue' is offered to:

A. Public

B. Promoters

C. Existing shareholders in proportion to their holding

D. Employees

Answer: Option C

Solution (By JKSSB Mock Tests)

Rights shares are offered to existing equity shareholders on a pro-rata basis.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Under single entry system, which of the following is usually not maintained?

A. Cash book

B. Personal accounts

C. Debtors and creditors accounts

D. Real and nominal accounts

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Single entry often lacks complete double entry; real and nominal accounts may not be fully maintained.

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

Question #2

In the 'Finance Act, 2023', which change was introduced for the new income tax regime?

A. Made default tax regime with more exemptions

B. Abolished the new regime

C. No change

D. Increased tax rates

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
The new regime was made the default regime from FY 2023-24, with certain reliefs.

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

Question #3

S1: Under the Companies Act 2013, a company can buy back its shares up to 25% of its total paid-up equity capital in a financial year. S2: The debt-equity ratio should not exceed 2:1 after a buyback of shares. Which statement(s) is/are correct?

A. S1 only

B. Both S1 and S2

C. S2 only

D. Neither S1 nor S2

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Section 68 of the Companies Act 2013 limits buyback to 25% of total paid-up equity capital in a year and mandates that the post-buyback debt-to-equity ratio must not exceed 2:1. Both are correct.

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

Explore All Accountancy and Book Keeping MCQs