Top 550+ Solved Corporate Accounting MCQ Questions Answer

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Q. Computerized accounting requires transaction data to be enteredinto………………………

a. Accounting Package.

b. Accounting software

c. Accounting estimates

d. none

  • a. Accounting Package.

Q. The choice of customized accounting packages is made on the basis of the………….

a. Vendor

b. Purchaser

c. Buyer

d. Client

  • a. Vendor

Q. Enterprise resource planning is an ……………………………..

a. Accounting Package.

b. Accounting software

c. Accounting estimates

d. none

  • b. Accounting software

Q. AS400 is a ………………………………accounting software.

a. Financial

b. Management

c. Cost

d. none

  • a. Financial

Q. While calculating purchase price, the following values of assets are considered

a. Book value

b. New values fixed

c. Average values

d. Market values

  • c. Average values

Q. Which of the following statement is correct?

a. The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only

b. The amount of Goodwill or Capital Reserve is found out in the books of vendor company only.

c. Goodwill = Net Assets – Purchase price

d. The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

  • a. The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only

Q. The Amalgamation Adjustment Account appears in the books, it is shown under theheading of ......... in the balance sheet.

a. Reserve and Surplus

b. Fixed Assets

c. Investments

d. Miscellaneous expenditure

  • d. Miscellaneous expenditure

Q. If amalgamation is in the ..............., the General Reserve or Profit and Loss A/cbalance will not be shown in the balance sheet.

a. Form of Merger

b. Form of purchase

c. Net assets method

d. Consideration method

  • b. Form of purchase

Q. In case of .............., one existing company takes over the business of anothercompany and no new company is formed.

a. Amalgamation

b. Absorption

c. Reconstruction

d. None of the Above

  • b. Absorption

Q. In amalgamation of two companies

a. Both companies lose their existence

b. Both companies continue

c. Any one company continues

d. none

  • a. Both companies lose their existence

Q. When purchasing company pays purchase consideration, it will be debited to

a. Business purchase account

b. Assets account

c. Liquidator of selling company’s account

d. none

  • c. Liquidator of selling company’s account
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