Accounting II

Activity II True / False Run Game

True/False Questions
Module 1 Accounting for Share Capital
1.
2.
3.
4.
5.
6.

Shares and bonds mean the same.

Preference shares generally carry a fixed rate of dividend.
A public company is prohibited from issuing shares to the public.
A private company issues prospectus.
IPO means Initial public option.
Oversubscription is a situation when the number of shares issued to the
public is more than the number of shares for which application is received.
7. Equity shares are also called as Ordinary shares.
8. Preference shareholders are paid their dividend before any interest is paid
to the debenture holders.
9. Red-herring prospectus may not contain the issue price or the size of the
issue.
10.Balance in the forfeited shares account represents gain to the company.
11.A private company is prohibited from inviting the public to subscribe to the
shares and debentures of the company.
12.Green-shoe option allows a company to sell more shares than issued by
the company
13.Prospectus is issued by a private limited company.
14.Equity shareholders are paid dividend at a rate fixed by the directors of
the company
15.Underwriters are the directors of the company.
16.The unpaid on share allotment is transferred to Calls in arrears account.
17.Under subscription is a situation where the number of shares is more than
that applied for by the company.
18.A statement in lieu of prospectus is required when a public company does
not want to issue shares to the public.
19.Book-building helps a company to assess the demand for its shares or
debentures.
20.Underwriters guarantee the subscription of the securities issued by the
company.
21.Lead managers are banks or financial institutions etc. appointed by a
company to manage an issue of securities by a company.
22.Bid price is the price at which an investor can offer to subscribe to the
shares etc of a company.

The Game
Students in the class, to be divided into two groups. Each group, to choose a name for the
groups. Two chairs to be taken. Letter T to be affixed on one of the chairs and letter F on
the other, indicating respectively True or False. Each member in the group gets a chance to
answer a true/false question and is to answer when their turn comes. Each correct answer to
the question carries one mark.

After the true false question is asked, the two students have to run to sit at either of chairs
indicating their answer for the question. The group should quickly adjust their seating
position to allow the next pair of students to come at the forefront to take the challenge. The
marks of the two groups are totalled and whichever group scores more is declared the winner
of the game.

Report
The game was conducted in
i. BMS IB B- Chmpions team was the winner
ii. BMS IB A- Gamma team was the winner