Question : The shares on which there is no any pre fixed rate of dividend, but the rate of dividend is fluctuating every year according to the availibility of profit, such shares are called :

Option 1: Preference Share

Option 2: Equity Share

Option 3: Non cumulative Preference share

Option 4: Non Guaranteed Preference share

Question : When such a dividend is declared (i.e. approved) in the AGM, choose the correct Journal entry

Option 1: Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr.
To Dividend Payable

Option 2: Dividend payable A/c Dr
To surplus is statement of profit and loss account

Option 3: Dividend paid A/c Dr
To Trading Account

Option 4: None of the above

Question : When such a dividend is declared (i.e. approved) in the AGM, choose the correct Journal entry

Option 1: Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr.
To Dividend Payable

Option 2: Dividend payable A/c Dr
To surplus is statement of profit and loss account

Option 3: Dividend paid A/c Dr
To Trading Account

Option 4: None of the above

Question : What among the following is not a characteristic of a preference share?

Option 1: right to receive dividend

Option 2: voting right

Option 3: right to receive interest

Option 4: All of the above

Question : Shareholders receive from the company-

Option 1: Interest

Option 2: Profit

Option 3: Commission

Option 4: Dividend