An underwriter for a company's share is paid
Interest
Commission
Dividend
Salary
Correct answer is B
Underwriting commission is the compensation that an underwriter receives for offering underwriting services. a fee is paid as a return for the implicit risk involved in the underwriting contract.
Which of the following is a form of memorandum of association?
Names of directors
Appointment of directors
Object of the business
Payment of dividend
Correct answer is C
A memorandum of association contains a name clause, registered office clause, object (or objective clause), objects clause, liability clause, capital clause, and association clause. An MOA is a type of legal paper that is prepared when forming and registering a limited liability company (LLC).
The double entry to record the proceeds on disposal of assets in debit
Bank account; credit asset disposal account
Asset disposal account; credit bank account
Provision for depreciation account; credit asset disposal account
Asset disposal account; credit provision for depreciation account
Correct answer is C
Debit provision for Depreciation account (to remove the equipment's up-to-date accumulated depreciation), Credit the account Equipment (asset disposal account) to remove the equipment's cost.
Which of the following is not part of the central processing unit of a computer?
Arithmetical and lgical unit
Memory unit
Input unit
Control unit
Correct answer is C
Central processing unit (CPU), computer system, generally composed of the main memory, control unit, and arithmetic-logic unit.
Which of the following is not the purpose of a control account?
Check on errors of addition
Locate errors
Locate missing figures
Monitor the cash book
Correct answer is D
In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created.
The details for each control account will be found in a related (but separate) subsidiary ledger. The control account keeps the general ledger free of details, but still has the correct balance for preparing the company's financial statements.