Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. When an existing company takes over the business of one or more existing companies, itis called….
a. amalgamation
b. absorption
c. internal reconstruction
d. none of these
Q. Liquidation expenses paid by the transferee company is debited to …
a. General reserve account
b. P/L Account
c. goodwill account
d. none of these
Q. Which of the following fictitious assets is not taken over by the transferee company?
a. Preliminary expenses
b. underwriting commission
c. discount on issue of shares
d. all of these
Q. Which of the following is considered as an asset while calculating purchase consideration?
a. goodwill
b. patent
c. trade mark
d. all of these
Q. The accumulated losses and fictitious assets of the transferor company are transferred to-------- a/c.
a. equity share holders
b. transferee company
c. equity capital
d. realization
Q. Which of the following a/c is debited when statutory reserve of the transferor companyis taken over by the transferee company?
a. goodwill a/c
b. amalgamation adjustment a/c
c. capital reserve a/c
d. statutory reserve
Q. Under purchase method of amalgamation, --------- of the transferor company continues to appear in the balance sheet of the transferee company.
a. capital reserve
b. general reserve
c. statutory reserve
d. specific reserve
Q. Which of the following should not be considered as a part of purchase consideration?
a. Payment to equity share holders
b. payment to preference share holders
c. payment to debenture holders
d. cash payment to share holders
Q. Which of the following is considered while calculating purchase consideration under Net asset method?
a. Assets taken over
b. liabilities taken over
c. good will taken over
d. all of the above
Q. Under net payment method, purchase consideration includes all payments made to theshare holders in the form of ---------
a. Equity share
b. preference share
c. cash
d. all of these
Q. Which of the following is a statutory reserve?
a. Development Allowance Reserve
b. Capital Reserve
c. Workmen’s Compensation Fund
d. CRR
Q. Any excess amount paid to preference share holders is debited to ------ --- account
a. realisation
b. preference share holders
c. P&L
d. preference share capital