Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in -------------
a. Share capital
b. reserves
c. assets
d. liabilities
Q. The excess of purchase consideration over net assets of the transferor company acquired by the transferee company should be recognized as -------- in purchase method
a. Capital reserve
b. general reserve
c. good will
d. P&L
Q. In purchase method, the excess of net asset of the transferor company acquired by thetransferee company over the purchase consideration should be recognized as ------------
a. P&L
b. good will
c. general reserve
d. capital reserve
Q. Alteration of shares of smaller amounts into shares of larger amount is called…..of sharecapital
a. surrender
b. subdivision
c. consolidation
d. none of these
Q. The amount of surrendered shares is credited to …
a. CRR
b. sinking fund
c. capital reduction account
d. reserve
Q. Amount sacrificed by shareholders are credited to ….
a. capital reserve
b. general reserve
c. capital reduction
d. none of these
Q. Capital reduction account is used to …
a. write off losses
b. transfer to capital
c. issue bonus shares
d. none of these
Q. Any increase in the value of assets is…. to capital reduction
a. debited
b. credited
c. Ignored
d. None of these
Q. --------- is the account created in connection with internal reconstruction.
a. realization a/c
b. capital reduction a/c
c. adjustment a/c
d. CRR a/c
Q. Alteration of shares of larger denominations into smaller denominations is called -------- of shares.
a. consolidation
b. surrender
c. sub-division
d. valuation
Q. Which of the following does not involve liquidation of any company?
a. internal reconstruction
b. amalgamation
c. absorption
d. external reconstruction
Q. Under which of the following circumstances can a company resort to internalreconstruction?
a. accumulated huge losses
b. shortage of capital
c. over valued assets
d. all of these
Q. The balance in capital reduction a/c after writing off all accumulated loss, fictitiousassets and overvalued assets are transferred to -------------
a. capital reserve
b. general reserve
c. reserve capital
d. good will
Q. Which of the following result in reduction of capital?
a. Reducing share capital
b. reducing the amount payable to creditors
c. appreciation in the value of assets
d. all of these
Q. Which of the following is not an alteration of capital?
a. consolidation of shares
b. sub- division of shares
c. conversion of shares in to stock
d. paid off paid up capital in excess of needs of the company.