Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. Amalgamation is done for ………….
a. Eliminating competition
b. Dominating the market
c. Enjoying the benefits of large scale operation
d. All of these
Q. Company which is amalgamated into another company is called ……………..
a. Transferor company
b. Transferee Company
c. Purchasing company
d. Holding company
Q. …………….is the company into which a company is amalgamated.
a. Transferor company
b. Transferee Company
c. Subsidiary company
d. Holding company
Q. Purchase consideration is payable to …………..
a. Creditors
b. Shareholders
c. Debenture holders
d. All of these
Q. In …..., a new company is formed to take over the business of an existing company whichgoes into liquidation.
a. Amalgamation
b. External reconstruction
c. Absorption
d. Internal reconstruction
Q. The purchase of an existing company which goes into liquidation by another existingcompany is known as …………..
a. Amalgamation
b. External reconstruction
c. Absorption
d. Internal reconstruction
Q. Pooling of interest method is used in the case of ……………..
a. Amalgamation in the nature of purchase
b. External reconstruction
c. Amalgamation in the nature of merger
d. Internal reconstruction
Q. Amalgamation adjustment account is opened in the books of Transferee Company toincorporate …………..
a. The assets o transferor company
b. The statutory reserves of Transferor Company
c. The liabilities of transferor company
d. The statutory reserves of Transferee Company.
Q. Loss on realisation is transferred to …………..
a. Transferee Company Account
b. Transferor Company Account
c. Shareholders Account
d. Creditors Account
Q. ………… is a statutory reserve
a. General Reserve
b. Export profit reserve
c. Dividend equalization reserve
d. Capital Reserve
Q. Liquidation expenses paid by the transferee company are debited to ………
a. Liquidation expense Account
b. Liquidators Account
c. Preliminary expenses Account
d. Goodwill Account
Q. Under purchase method, the excess of net assets over purchase consideration is ……….
a. Debited to goodwill account
b. Credited to goodwill account
c. Credited to capital reserve account
d. Debited to capital reserve account
Q. X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of5%. The premium should be debited to ………
a. Realisation Account
b. Shareholders Account
c. P&L Account
d. None of these
Q. Which of the following is not a statutory reserve?
a. General reserve
b. Development rebate reserve
c. Investment allowance reserve
d. Workmen compensation fund
Q. Realisation Account is a …………..
a. Real Account
b. Personal Account
c. Nominal Account
d. Suspense Account