( Best 10+ ) Accounting for Internal Reconstruction MCQ

by Mr. DJ

Accounting for Internal Reconstruction MCQ

Accounting for Internal Reconstruction MCQ

Accounting for Internal Reconstruction MCQ

1. Internal reconstruction is a slow and tedious process since it required the approval of :

A. Court

B. Shareholders

C. Creditors

D. All of the Above.

2. If the preference shareholder agree to sacrifice the arrear off preference dividend, it is credited to:

A. Capital Reduction A/C

B. Preference Shareholders A/C

C. Goodwill A/c

D. Profit& Loss A/C

3. After the implementation of the scheme of internal reconstruction , any surplus in
capital reduction A/C is transferred to :

A. Capital A/C

B. Profit & Loss A/C

C. Shareholders A/C

D. Capital reserve A/C

4. ……………………reconstruction refers to the reduction of capital to cancel any paid up capital.

A. External

B. Internal

C. Amalagamation

D. Absorption

5. Reduction of share capital is possible by the company, if it is authorized by its:

A. Articles.

B. Special resolution.

C. Confirmation of the court.

D. All of the Above.

6. Converting share of smaller denomination into larger denominations is called:

A. Sub-division

B. Combination

C. Consolidation

D. Merger

7. Converting share of larger denomination into smaller denominations is called:

A. Sub-division

B. Combination

C. Consolidation

D. Merger

8. After the implementation of scheme of internal reconstruction, any amount left in the capital reduction A/C will be transfer to:

A. Capital Reserve A/C

B. Capital A/c

C. Profit & Loss A/C

D. Shareholders A/C

9. The main purpose of internal reconstruction is to:

A. Eliminate the accumulated losses from the books.

B. Bring down the assets to their true values

C. Both A&B above

D. Only A

10. A fair and equitable distribution of loss is the essence of a successful scheme of:

A. External reconstruction.

B. Merger

C. Amalgamation

D. Internal reconstruction

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