( Best 50+ ) Accounting Standards MCQ

Accounting Standards MCQ

Table of Contents

Accounting Standards MCQ

Accounting Standards MCQ

11. When two or more companies carrying on similar business decide to combine, a new
company is formed, it is known as…………………………

A. Merger

B. Amalgamation

C. Absorption

D. Demerger

12. When one of the existing companies take over business of another company or
companies, it is known as…………………………………

A. Merger

B. Amalgamation

C. Absorption

D. Demerger

13. In case of ………….., one existing company takes over the business of another
company and no new company is formed

A. Merger

B. Amalgamation

C. Absorption

D. Demerger

14. While calculating purchase consideration …………… values of assets is to be
considered.

A. Total

B. Half

C. Net

D. 25%

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

A. Purchase consideration

B. Goodwill

C. Liabilities

D. Total Assets

16. 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

17. ………………………………………………..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

18. Depreciation arise because of………………………..

A. Abnormal quality

B. Normal wear and tear

C. Excessive use of a product

D. Low quality product

19. Loss Prior to incorporation is treated as ……….. Loss, and Vendor’s Salaries are
chargeable to ……………. incorporation period.

A. Pre

B. During

C. Post

D. In between

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

A. Fixed asset

B. Current asset

C. Fictitious asset

D. Wasting asset

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