Top 550+ Solved Corporate Accounting MCQ Questions Answer

From 586 to 596 of 596

Q. Net Assets minus Capital Reserve is………………………

a. Purchase consideration

b. Goodwill

c. Liabilities

d. Total Assets

  • a. Purchase consideration

Q. The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co.

a. Equity shareholders

b. Preference share holders

c. Debenture holders

d. vendors

  • b. Preference share holders

Q. ………………………………………………..method the amount of depreciation expenses remains same throughout the useful life of a fixed assets

a. Straight line method

b. Annuity methods

c. Purchase value method

d. Written down value methods

  • a. Straight line method

Q. Depreciation arise because of………………………..

a. Abnormal quality

b. Normal wear and tear

c. Excessive use of a product

d. Low quality product

  • b. Normal wear and tear

Q. Which type of asset class includes those assets which have only definite use andbecome valueless when the yield is over?

a. Fixed asset

b. Current asset

c. Fictitious asset

d. Wasting asset

  • d. Wasting asset

Q. Shares received from the new company are recorded at –

a. Face value

b. Average price

c. Market value

d. None of the above

  • c. Market value
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