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Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define equity shares.
π‘ Hint: Think about how dividends relate to company performance.
Question 2
Easy
What is face value?
π‘ Hint: What is the set value when shares are issued?
Practice 4 more questions and get performance evaluation
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the face value of a share?
π‘ Hint: Think of what the share is worth when itβs first created.
Question 2
True or False: Preference shares provide a variable dividend.
π‘ Hint: Consider how dividends are defined for different types of shares.
Solve 2 more questions and get performance evaluation
Push your limits with challenges.
Question 1
A company issues 200 equity shares with a face value of βΉ50 at par. Calculate the total funds raised from this issue and describe how this amount will be recorded in the Share Capital account.
π‘ Hint: Multiply the number of shares by their face value for total calculation.
Question 2
If a company issues 100 preference shares at a premium of βΉ5, what is the issue price per share, and how is the accounting entry different from when issued at par?
π‘ Hint: Donβt forget to include the premium as part of the total price.
Challenge and get performance evaluation