The term 'Sweat Equity' refers to: MCQ with Answer and Explanation

Question

Share Report Error

The term 'Sweat Equity' refers to:

A. Shares issued to employees at discount or for consideration other than cash

B. Rights shares

C. Shares issued to promoters for their efforts

D. Bonus shares

Answer: Option A

Solution (By JKSSB Mock Tests)

Sweat equity shares are issued to employees or directors for providing know-how or value addition.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is a feature of standard costing?

A. It ignores variances

B. It is a historical cost system

C. It is used for external reporting

D. It uses predetermined costs for control purposes

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Correct Answer: Option D

Explanation:
Standard costing uses predetermined (standard) costs to compare with actual costs, allowing for variance analysis and cost control.

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Question #2

The 'Sabka Vishwas' scheme was related to:

A. GST only

B. Indirect tax legacy disputes

C. Customs only

D. Income tax

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Correct Answer: Option B

Explanation:
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 covered service tax and excise disputes.

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Question #3

An unrecorded bank charge for ₹150 will be treated in BRS starting with Cash Book balance (Dr.):

A. Added ₹150

B. Deducted ₹150

C. No adjustment

D. Added twice

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Correct Answer: Option B

Explanation:
Bank charges have been debited by bank in passbook, reducing the balance, but not recorded in cash book. To reconcile from cash book to passbook, we deduct the charges.

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

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