Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. Investments made by a holding company in a subsidiary company are always to beshown in ……………….
a. Profit & Loss A/C
b. Consolidated Balance Sheet.
c. Minority Interest.
d. Dividend A/C
Q. If AB Ltd buys more than 50% of the shares in CD Ltd then which of the followingstatements accurately summarizes the relationship between these two firms?
a. AB Ltd is a subsidiary undertaking of CD Ltd
b. CD Ltd is the parent undertaking
c. AB Ltd is the parent undertaking
d. There is no significant financial relationship between the two
Q. On a consolidated balance sheet, if the shares of a company have been bought formore than the balance sheet value then the difference would appear as:
a. Goodwill
b. Capital reserve
c. Loss on purchase
d. Profit on purchase
Q. Pre-acquisition profit in subsidiary company is considered as:
a. Revenue Profit
b. Capital Profit
c. Goodwill
d. None of the above
Q. Profit earned after acquisition of share is treated as:
a. Revenue Profit
b. Capital Profit
c. Goodwill
d. None of the above.
Q. Profit earned before acquisition of share is treated as:
a. Revenue Profit
b. Capital Profit
c. Goodwill
d. Revaluation Profit
Q. Preparation of consolidated statements as per AS 21 is :
a. Optional
b. Mandatory for All
c. Mandatory for listed companies.
d. Mandatory for PVT. companies.
Q. Face value of debentures of subsidiary company, held by holding co.is deductedfrom:
a. Debentures
b. Cost of Control
c. Minority Interest.
d. Goodwill.
Q. Minority Interest includes:
a. Share in share capital
b. Share in capital profit
c. Share in revenue profit
d. All of the above.
Q. F.M.P. stands for …………………
a. Firm maintainable profits
b. Future maintainable profits
c. False maintainable profits
d. Foreign maintainable profits.
Q. P/E ratio is a relationship between……………….. and ……………
a. MP/ EPS
b. NP/EPS
c. GP/ EPS
d. LOSS/EPS
Q. Intrinsic Value Method is also called as………………..
a. Yield method
b. Fair value method
c. Asset Backing method
d. none
Q. Yield value is based on the assumption that ……………….
a. Revenue realisation
b. Going concern
c. Prudence
d. Cost concept
Q. NRR stands for ……………………………….
a. Normal rate of return
b. Non resident
c. Natural rate of return
d. Nil rate of return