Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. Which of the following cannot be used for the purpose of creation of capital redemptionreserve account?
a. profit and loss account (credit balance)
b. general reserve account
c. dividend equalization reserve account
d. unclaimed dividends account
Q. The Capital Redemption reserve is created for the following reasons:
a. to maintain the capital intact
b. to safeguard the interest company’s creditors
c. both of the above
d. none of the above
Q. Which of the following accounts can be transferred to capital redemption reserve account?
a. general reserve account
b. forfeited shares account
c. profit prior to incorporation
d. securities premium account
Q. The technique of converting figures into percentage in some common base is called _____.
a. ratio analysis
b. common size statement analysis
c. trend percentages
d. none of these
Q. The ratio which depicts the relationship between two items, one of which is drawn from theBalance Sheet and the other from the revenue account
a. current ratio
b. equity ratio
c. net profit ratio
d. debtors turnover ratio
Q. The ratio of liquid asset to current liabilities
a. quick ratio
b. current ratio
c. absolute liquid ratio
d. combined ratio
Q. A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of:
a. Absorption
b. External reconstruction
c. Amalgamation.
d. none
Q. As per AS–14 purchase consideration is what is payable to
a. Shareholders
b. Creditors
c. Debenture holders
d. Shareholders and Debenture holders.
Q. In the case of ………………………. only one of the combining companies survivesand the other losses its separate identity.
a. Acquisition
b. Merger
c. Amalgamation
d. Formation
Q. ……………….is the amount payable by the purchasing companies to the vendorcompany for taking over the business of vendor company.
a. Goodwill
b. Total assets
c. Purchase consideration
d. None of these
Q. In absorption there is one ……………………and no formation.
a. Merger
b. Liquidation.
c. Demerger
d. Formation
Q. In external liquidations, there is one liquidation and one ………………
a. Formation
b. Merger
c. Demerger
d. Purchase consideration
Q. When two or more companies carrying on similar business decide to combine, anew company is formed, it is known as ..................
a. Amalgamation
b. Absorption
c. Internal reconstruction
d. External reconstruction
Q. When one of the existing companies take over business of another company or companies, it is known as ...........
a. Amalgamation
b. Absorption
c. Internal reconstruction
d. External reconstruction