Question : The maximum amount beyond which a company is not allowed to raise funds, by issue of shares is known as ___________.
Option 1: Issued Capital
Option 2: Reserve capital
Option 3: Nominal capital
Option 4: Subscribed capital
Correct Answer: Nominal capital
Solution : The amount of share capital that a firm is authorised to raise money through the public market is known as authorised capital, registered capital, or nominal capital. Basically, the capital that is listed in the company's memorandum of association beyond the authorised capital, registered capital, or nominal capital is thus registered, and the firm is not permitted to raise more funds.
However, the Authorised capital can further be increased by the Company.
Hence the correct answer is option 3.
Question :
As all other business concerns be its sole proprietorship or partnership have capital, a not-for- profit organisation has:
Option 1:
capital fund
Option 2: general fund
Option 3: any of these
Option 4: none of these
General donations are treated as:
Revenue receipt
Option 2:
Capital receipt
Option 3: Revenue expenditure
Option 4: Capital expenditure
Shubham club received amount Rs.1,00,000 as per the WILL of a deceased person without any specification. This will be treated as:
Option 1: revenue receipt
Option 2: addition to capital fund
Option 3: a liability in the Balance Sheet
Option 4: None of these
The surplus generated by a not-for-profit organisation is:
Option 1: Distributed amongst the members
Option 2: Added to capital fund
Option 3: Credited to a special fund
Any amount received as per the will of a deceased person specifying its use is a:
Option 3: Both 1 and 2
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