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Free download in PDF Company Accounts Objective Type 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.
(21)
Section of companies act 1956 deals with the scheme of stock invest
[A]
69 to 73
[B]
69 to 70
[C]
69 to 71
[D]
69 to 72
(22)
After getting minimum subscription of shares, the company has to allot shares with in---------------days.
[A]
120
[B]
90
[C]
100
[D]
110
(23)
If Company A purchases the majority shares of Company B, what combination would this be referred to?
[A]
Amalgamation
[B]
Absorption
[C]
Takeover
[D]
None of the above
(24)
When one of the existing companies take over business of another company or companies, it is known as ...........
[A]
Amalgamation
[B]
Internal reconstruction
[C]
External reconstruction
[D]
Absorption
(25)
While calculating purchase price, the following values of assets are considered
[A]
Book value
[B]
New values fixed
[C]
Average values
[D]
Market values
(26)
Shares received from the new company are recorded at -
[A]
Market value
[B]
Average price
[C]
Face value
[D]
None ofthe above
(27)
If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt.............. Accounting policies.
[A]
Uniform
[B]
Fifo method
[C]
Lifo method
[D]
None of these
(28)
The Amalgamation Adjustment Account appears in the books, it is shown under the heading of in the balance sheet.
[A]
Miscellaneous expenditure
[B]
Reserve and Surplus
[C]
Fixed Assets
[D]
Investments
Answer: Miscellaneous expenditure
(29)
If the intrinsic values of shares exchanged are not equal, the difference is paid in ...........
[A]
Debenture
[B]
Pref. share
[C]
Assets
[D]
Cash
(30)
Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then...........
[A]
Goodwill Rs. 15,913
[B]
Capital Reserve Rs. 8,777
[C]
Goodwill Rs. 8,777
[D]
None of these
Answer: Goodwill Rs. 8,777
31
Both of the old companies will not exist in ...........
[A]
Amalgamation
[B]
Internal reconstruction
[C]
Absorption
[D]
External reconstruction
32
When liquidation expenses is paid and borne by seller company then it is debited to
[A]
Realisation A/c
[B]
Bank A/c
[C]
Goodwill A/c
[D]
None of the above
33
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]
Intrinsic Value
[B]
Fair Value
[C]
Yield Value
[D]
Face Value
34
All direct & indirect expenses related to business are charged:
[A]
Trading account Profit and Loss account
[B]
Profit and loss account
[C]
Trading account
[D]
Directly to Balance sheet
Answer: Trading account Profit and Loss account
35
When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ..................
[A]
Amalgamation
[B]
Absorption
[C]
Internal reconstruction
[D]
External reconstruction
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