Top 50+ Solved Holding Company Accounts MCQ Questions Answer
From 1 to 14 of 14
Q. At the time of …………………, inter company debts and acceptances are to becancelled out.
a. Merger
b. Absorption.
c. Internal reconstruction.
d. Consolidation.
Q. Inter- company dividends are ……………………..to the cost of investment in thesubsidiary company for calculating goodwill or capital reserve.
a. Added
b. Deducted
c. Remove
d. None of the above.
Q. Holdings of minority will …………………by the number of bonus shares received bythem.
a. Increase
b. Decrease
c. Remain same
d. None of the above
Q. Out of the unrealized profits, a holding company’s share is reduced from the stock and
a. Profit & Loss A/C
b. Goodwill.
c. Minority Interest
d. Capital A/C
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.
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