Accounting - Study Mode

[#2356] In which of the following interim dividend is treated?
Correct Answer

(B) In profit and loss appropriation account

Explanation

Solution: In profit and loss appropriation account interim dividend is treated. An interim dividend is a dividend payment made before a company's annual general meeting (AGM) and the release of final financial statements.

[#2357] Which of the following documents contains rules and regulations for internal management of the business?
Correct Answer

(B) Articles of association

Explanation

Solution: Articles of association contains rules and regulations for internal management of the business. Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company and for the attainment of its object as given in the memorandum.

[#2358] Which of the following is NOT a cash inflow?
Correct Answer

(A) Decrease in creditors
(H) Purchase of fixed asset

Explanation

Solution: Purchase of fixed asset is NOT a cash inflow. Cash inflow is the money received by an organization as a result of its operating activities, investment activities, and financing activities.

[#2359] Which of the following is quoted company?
Correct Answer

(C) Listed company

Explanation

Solution: Listed company is quoted company. The CA 2006 definition of 'quoted company' in s. 385 refers to companies listed on 'regulated markets' including the Main Market, but not AIM.

[#2360] Which of the following capital is required for the registration of the company?
Correct Answer

(C) Authorized capital

Explanation

Solution: Authorized capital is required for the registration of the company. The authorized capital of a company (sometimes referred to as the authorized share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorized by its constitutional documents to issue (allocate) to shareholders.