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Free download in PDF Company Accounts Multiple Choice Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams. These short solved questions or quizzes are provided by Gkseries.
(1)
Share allotment account is a --.
[A]
Real account
[B]
Nominal account
[C]
Impersonal account
[D]
personal account
(2)
The minimum share Application money is --.
[A]
10% of the issue price of shares
[B]
Re. 1 per share
[C]
15% of the face value of shares
[D]
5% of the face value of shares
Answer: 5% of the face value of shares
(3)
Premium received on issue of shares cannot be utilised for---------.
[A]
for distribution of dividend
[B]
for the issue of bonus shares
[C]
for writing of preliminary expenses
[D]
for providing premium payable on redemption
Answer: for distribution of dividend
(4)
When shares issued at premium which of the following account is credited?
[A]
Share allotment account
[B]
Share forfeited account
[C]
Share first call account
[D]
Share premium account
Answer: Share premium account
(5)
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
Answer: Certificate of commencement of business
(6)
Trade Payables are recorded in................
[A]
Asset side of B/S
[B]
P & L a/c
[C]
Liability side of B/S
[D]
None ofthe above
Answer: Liability side of B/S
(7)
The shares received from the new company is recorded at
[A]
Market value
[B]
Face value
[C]
Average price
[D]
None of these
(8)
The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co.
[A]
Capital Reserve Account
[B]
Equity share capital Account
[C]
Equity share capital Account
[D]
Preference shareholders Account
Answer: Preference shareholders Account
(9)
While calculating purchase consideration values of assets is to be considered.
[A]
Book value
[B]
Average price
[C]
Revalued price
[D]
None of the above
(10)
Net Assets minus Capital Reserve is
[A]
Purchase consideration
[B]
Goodwill
[C]
Total assets
[D]
None of these
Answer: Purchase consideration
(11)
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
Answer: Realisation Account
(12)
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
(13)
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
Answer: Both companies lose their existence
(14)
When purchasing company pays purchase consideration, it will be debited to
[A]
Liquidator of selling company’s account
[B]
Business purchase account
[C]
Assets account
[D]
None of the above
Answer: Liquidator of selling company’s account
(15)
When the Vendor (seller) company agrees to bear liquidation expenses, it will debit
[A]
Bank Account
[B]
Goodwill Account
[C]
Realisation Account
[D]
None of the above
Answer: Realisation Account
(16)
In case of , one existing company takes over the business of another company and no new company is formed.
[A]
Absorption
[B]
Amalgamation
[C]
Reconstruction
[D]
None of the Above
(17)
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
(18)
Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan
[A]
6 years
[B]
3 years
[C]
2 year
[D]
None of the above
(19)
Premium received on issue of shares is shown on --.
[A]
liability side of the balance sheet
[B]
asset side of the balance sheet
[C]
credit side of the P&L a/c.
[D]
debit side of the P & L a/c
Answer: liability side of the balance sheet
(20)
Premium on issue of shares can be used for --.
[A]
distribution of dividend
[B]
capital losses
[C]
writing of
[D]
transferring to general reserve
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