Holding Company Accounts MCQ
Accounts of Holding Companies
In this form of combination, subsidiary companies retain their institutions, and carry on their business as if they were distinct entities but their policies and management are controlled by the holding company due to latter holding a majority of shares and the consequent voting power.
Holding Company Accounts MCQ
1. At the time of …………………, inter company debts and acceptances are to be
cancelled out.
Preparation of consolidated Balance Sheet of Holding Co. and its subsidiary company as per
- As 11
- AS – 22
- AS 21
- AS – 23
Answer:-
AS 21
2. Inter- company dividends are ……………………..to the cost of investment in the
subsidiary company for calculating goodwill or capital reserve.
3. Holdings of minority will …………………by the number of bonus shares received by them.
The share of outsiders in the Net Assets in subsidiary company is known as under:
- outsiders liability
- Assets
- subsidiary company’s liability
- Minority Interest
Answer: –
D Minority Interest
4. Out of the unrealized profits, a holding company’s share is reduced from the stock and
5. Investments made by a holding company in a subsidiary company are always to be shown in ……………….
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6. If AB Ltd buys more than 50% of the shares in CD Ltd then which of the following statements accurately summarizes the relationship between these two firms?
7. On a consolidated balance sheet, if the shares of a company have been bought for more than the balance sheet value then the difference would appear as:
8. Pre-acquisition profit in subsidiary company is considered as:
9. Profit earned after acquisition of share is treated as:
10. Profit earned before acquisition of share is treated as:
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