Company Accounts MCQ
Company Accounts MCQ
11. After getting minimum subscription of shares, the company has to allot shares with in—————days.
A. 90
B. 100
C. 110
D. 120
12. If the minimum subscription is not received by the company, then the refund of application money should be made within ———-days.
A. 7
B. 9
C. 10
D. 22
13. In case of public limited company, after getting the———–the company can start the business
A. Memorandum of Association
B. Table A
C. Certificate of commencement of business
D. Articles of Association
14. If Company A purchases the majority shares of Company B, what combination would this be referred to?
A. Amalgamation
B. Takeover
C. Absorption
D. None of the above
15. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ………………
(A)Amalgamation
(B)Absorption
(C)Internal reconstruction
(D)External reconstruction
Also Read :-
16. When one of the existing companies take over business of another company or companies, it is known as ………..
(A)Amalgamation
(B)Absorption
(C)Internal reconstruction
(D)External reconstruction
17. While calculating purchase price, the following values of assets are considered
(A)Book value
(B)New values fixed
(C)Average values
(D)Market values
18. Shares received from the new company are recorded at –
(A)Face value
(B)Average price
(C)Market value
(D)None of the above
19. Which of the following statement is correct?
(A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only
(B)The amount of Goodwill or Capital Reserve is found out in the books of vendor company only.
(C)Goodwill = Net Assets –Purchase price
(D)The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.
20. If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt………….. Accounting policies.
(A)Lifo method
(B)Fifo method
(C)Weighted method
(D)Uniform
Also Read :-
