Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. ……….is not transferred to realisation account
a. Goodwill
b. Fictitious asset
c. Trademark
d. All of these
Q. In………., an existing company’s financial structure is reorganized without liquidating theexisting company and forming a new company.
a. Amalgamation
b. External reconstruction
c. Absorption
d. Internal reconstruction
Q. Internal reconstruction is done due to ………..
a. Accumulated losses
b. Shortage of working capital
c. Large amount of fictitious assets
d. All of these
Q. In ………., the company does not loss its identity
a. Amalgamation
b. External reconstruction
c. Absorption
d. Internal reconstruction
Q. Capital of a company can be reduced by …………
a. Authorization of Articles
b. Passing of a special resolution
c. Confirmation of court
d. All of these
Q. Capital Reduction Account is a ………..
a. Nominal Account
b. Permanent Account
c. Temporary Account
d. None of these
Q. The balance in Capital Reduction Account is transferred to …………
a. General Reserve
b. Profit and loss Account
c. Capital Reserve
d. Goodwill Account
Q. In internal reconstruction, increase in the value of fixed assets is credited to……….
a. Capital reserve
b. Share capital
c. General reserve
d. Capital reduction account
Q. In case of subdivision of share capital, the amount of share capital……….
a. Increases
b. Decreases
c. Does not change
d. None of these
Q. In case of subdivision of share capital, the total number of shares ……….
a. Increases
b. Decreases
c. Does not change
d. None of these
Q. In internal reconstruction, the existing company will be ……….
a. Amalgamated
b. Absorbed
c. Liquidated
d. None of these
Q. In internal reconstruction, amount sacrificed by shareholders are credited to……..
a. Capital reserve
b. General Reserve
c. Capital reduction account
d. None of these
Q. When company converts its equity shares into capital stock, the account to be credited is …
a. Equity share capital account
b. Equity capital stock account
c. No entry
d. None of these