Company Accounts MCQ
Company Accounts MCQ
31. While calculating purchase consideration …………… values of assets is to be considered.
(A) Book value
(B) Revalued price
(C) Average price
(D) Capital
32. Net Assets minus Capital Reserve is _________
(A) Goodwill
(B) Total assets
(C) Purchase consideration
(D) None of these
33. Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then………..
(A) Goodwill Rs. 8,777
(B) Capital Reserve Rs. 8,777
(C)Goodwill Rs. 15,913
(D) Capital Reserve R
34. The original amount of preference share capital should be transferred to ………… account in the time of amalgamation in the books of vendor co.
(A) Preference shareholders Account
(B) Capital Reserve Account
(C) Equity share capital Account
(D) Equity share capital Account
35. Both of the old companies will not exist in ………..
(A) Internal reconstruction
(B) Absorption
(C) External reconstruction
(D) Amalgamation
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36. When company purchases the business of another company …….. comes into existence.
(A)Amalgamation
(B)Absorption
(C)External Reconstruction
(D)Internal Reconstruction
37. When liquidation expenses is paid and borne by seller company then it is debited to _______
(A) Bank A/c
(B) Goodwill A/c
(C) Realisation A/c
(D) Capital Reserve A/c.
38. The shares received from the new company is recorded at
(A) Face value
(B) Market value
(C) Average price
(D) None of these
39. If the market price of the shares to be given for Purchase Consideration at the time of absorption, ………… of the share is to be determined
(A) Fair Value
(B) Face Value
(C) Intrinsic Value
(D) Yield Value
40. All direct & indirect expenses related to business are charged:
a)Profit and loss account
b)Trading account
c)Trading account Profit and Loss account
d)Directly to Balance sheet
41. Trade Payables are recorded in…………….
a) Asset side of B/S
b) Liability side of B/S
c) P & L a/c
d) None ofthe above
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