Company Accounts MCQ
Company Accounts MCQ
21. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ……… in the balance sheet.
(A)Reserve and Surplus
(B)Fixed Assets
(C)Investments
(D)Miscellaneous expenditure
22. If amalgamation is in the ……………, the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet.
(A)Form of Merger
(B)Form of purchase
(C)Net assets method
(D)Consideration method
23. If the intrinsic values of shares exchanged are not equal, the difference is paid in ………..
(A)Cash
(B)Debenture
(C)Pref. share
(D)Assets
24. In case of ………….., one existing company takes over the business of another company and no new company is formed.
(A)Amalgamation
(B)Absorption
(C)Reconstruction
(D) None of the Above
25. In amalgamation of two companies
(A)Both companies lose their existence
(B)Both companies continue
(C)Any one company continues
(D)None of the above
Also Read :-
26. When purchasing company pays purchase consideration, it will be debited to
(A)Business purchase account
(B)Assets account
(C) Liquidator of selling company’s account
(D)None of the above
27. When the purchasing company bears the liquidation expenses, it will debit the expenses to
(A)Vendor Company‘s Account
(B) Bank Account
(C)Goodwill Account
(D)None of the above
28. When the Vendor (seller) company agrees to bear liquidation expenses, it will debit
(A) Realisation Account
(B) Bank Account
(C) Goodwill Account
(D)None of the above
29. When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to
(A) Realisation Account
(B) Bank Account
(C) Liability Account
(D)None of the above
30. When the Net Assets are less than the Purchase Consideration, the difference will be
(A) Debited to Goodwill A/c.
(B) Debited to General Reserve
(C) none of these
Also Read :-
