MCQ on Issue of Right and Bonus Shares: Check the below Corporate and Management Accounting MCQ on Issue of Right and Bonus Shares with Answers Pdf free download. Corporate and Management Accounting MCQ on Issue of Right and Bonus Shares Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Issue of Right and Bonus Shares with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Issue of Right and Bonus Shares Questions with Answers based on the latest syllabus.

MCQ on Issue of Right and Bonus Shares

1. If a company makes bonus issue at 2:3 then it means
(A) For every two shares three bonus shares will be allotted
(B) For every three shares two bonus shares will be allotted
(C) For every Eve shares three bonus shares will be allotted
(D) For every five shares two bonus shares will be allotted

2. Bonus issue must be authorized
(A) By the board of directors
(B) Article of association of the company
(C) Shareholders by ordinary resolution
(D) All of the above

3. Value of the right = ?
(A) Market value plus the average price of the share
(B) Market value less average price of the share
(C) Market value multiplied by ad. adjustment factor
(D) Market value less average price of the share multiplied by an adjustment factor

4. Bonus issue can be made on
(A) Partly paid-up shares
(B) Fully paid-up shares
(C) Either (A) or (B)
(D) Both (A) and (B)

5. A company cannot issue fully paid-up bonus shares to its members out of:
(A) Securities Premium
(B) Capital Redemption Reserve
(C) Revaluation Reserve
(D) All of the above

6. Right shares can be offered by the companies to persons other than existing shareholders or employees by passing a:
(A) Special Resolution
(B) Extra-ordinary Resolution
(C) Ordinary Resolution
(D) Board Resolution

7. Which of the following is a correct journal entry for the issue of bonus shares?
(A) Debit the equity share capital account and credit the securities premium account
(B) Debit the bonus to shareholders account and credit the general reserve account
(C) Debit the general reserve account and credit the equity share capital account
(D) Debit the capital reserve account and credit the equity share capital account

8. Notice relating to an offering for right issue shall be dispatched through
(A) Registered Post
(B) Speed Post
(C) Electronic Mode
(D) Any of the above

9. Which of the following statement is true if the company issues bonus shares?
(A) Bonus share is an income
(B) Total market value comes down after the bonus issue
(C) Paid-up share capital increases with the issue of bonus shares
(D) Fund flow is affected adversely due to bonus issues

10. Which of the following can be used for issuing bonus shares?
(A) Capital Redemption Reserve
(B) Securities Premium Account
(C) Profit and Loss Account
(D) Any of the above

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