Corporate Accounting MCQ
Given below are Corporate Accounting MCQ with answers. These multiple choice questions are useful for BBA, B Com, MBA, MMS, M Com, BA, MA, and PGDM students. These corporate accounting mcq questions can also be used for UGC NET, SET, Ph D, UPSC, and MPSC competitive entrance exams.
Corporate Accounting MCQ
71) Amalgamation is said to be in the nature of merger if:
A. All assets and liabilities of transferor company are taken over by the transferee company.
B. Business of transferor company is intended to be carried on by the transferee company.
C. Purchase consideration must be paid in equity shares by the transferee company except for fraction shares.
D. All of the above
Option: D
72) Amalgamate adjustment account is opened in the books of transferee company to incorporate:
A. The assets of the transferor company
B. The liabilities of the transferor company
C. The statutory reserves of the transferor company
D. The non – statutory reserves of the transferor company
Option:C
73) Goodwill arising on amalgamation is to be
A. Retained in the books of the transferee company
B. Amortised to income on a systematic basis normally five years
C. Adjusted against reserves or profit and loss account balance
D. All of the above
Option:B
74) Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to:
A. General reserve
B. Amalgamation adjustment account
C. Goodwill or capital reserve
D. None of the above
Option:A
75) Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to:
A. General reserve
B. Amalgamation adjustment account
C. Goodwill or capital reserve
D. None of the above
Option:C
Also Read :-
76) Which of the following is not deferred revenue expenditure?
A. Heavy advertisement expenditure.
B. Expenses incurred in removing the business to more convenient premises.
C. Preliminary expenses.
D. Depreciation on fixed assets.
Option: D
77) For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company.
A. 51%
B. 90%
C. 99%
D. 100%
Option: B
78) AS – 14 is not applicable if when Transferee Company acquires Transferor Company and Transferor Company:
A. Ceases to exist
B. Separate entity is Continue to exist
C. Applied in all cases
D. None of the above
Option: B
79)A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of
A. Absorption
B. External reconstruction
C. Amalgamation.
D. commencement
Option:C
80) X Ltd. goes into liquidation and a new company Z Ltd. is formed to take over the business of X Ltd. It is a case of:
A. Absorption
B. External reconstruction
C. Amalgamation.
D. commencement.
Option:B
Also Read :-
