Top 550+ Solved Corporate Accounting MCQ Questions Answer
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.
Q. Internal reconstruction is a slow and tedious process since it required the approval of :
a. Court
b. Shareholders
c. Creditors
d. All of the Above.
Q. If the preference shareholder agree to sacrifice the arrear off preference dividend, it iscredited to:
a. Capital Reduction A/C
b. Preference Shareholders A/C
c. Goodwill A/c
d. Profit& Loss A/C
Q. After the implementation of the scheme of internal reconstruction , any surplus incapital reduction A/C is transferred to :
a. Capital A/C
b. Profit & Loss A/C
c. Shareholders A/C
d. Capital reserve A/C
Q. ……………………reconstruction refers to the reduction of capital to cancel any paid upcapital.
a. External
b. Internal
c. Amalagamation
d. Absorption
Q. Reduction of share capital is possible by the company, if it is authorized by its:
a. Articles.
b. Special resolution.
c. Confirmation of the court.
d. All of the Above.
Q. Converting share of smaller denomination into larger denominations is called:
a. Sub-division
b. Combination
c. Consolidation
d. Merger
Q. Converting share of larger denomination into smaller denominations is called:
a. Sub-division
b. Combination
c. Consolidation
d. Merger
Q. After the implementation of scheme of internal reconstruction, any amount left in thecapital reduction A/C will be transfer to:
a. Capital Reserve A/C
b. Capital A/c
c. Profit & Loss A/C
d. Shareholders A/C
Q. The main purpose of internal reconstruction is to:
a. Eliminate the accumulated losses from the books.
b. Bring down the assets to their true values
c. Both A&B above
d. Only A
Q. A fair and equitable distribution of loss is the essence of a successful scheme of:
a. External reconstruction.
b. Merger
c. Amalgamation
d. Internal reconstruction
Q. At the time of …………………, inter company debts and acceptances are to becancelled out.
a. Merger
b. Absorption.
c. Internal reconstruction.
d. Consolidation.
Q. Inter- company dividends are ……………………..to the cost of investment in thesubsidiary company for calculating goodwill or capital reserve.
a. Added
b. Deducted
c. Remove
d. None of the above.
Q. Holdings of minority will …………………by the number of bonus shares received bythem.
a. Increase
b. Decrease
c. Remain same
d. None of the above
Q. Out of the unrealized profits, a holding company’s share is reduced from the stock and
a. Profit & Loss A/C
b. Goodwill.
c. Minority Interest
d. Capital A/C