GkSeries.com

Commerce Short Question | Gkseries

Q.

Which one of the following statements is not true ?

[A] When there is one liquidation and one formation it is known as external construction
[B] Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger
[C] Under the pooling of interest method, the transferee company incorporates the assets and liabilities of the transferor company at book value
[D] The vendor company transfers preliminary expenses (at the time of absorption) to equity shareholders’ account
Answer & Explanation

Answer: Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger

DOWNLOAD CURRENT AFFAIRS PDF FROM APP

Please share this page

Click Here to Read more questions

Teacher Eligibility Test