Company Accounts Quiz | Company Accounts Objective Type Questions and Answers

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Questions
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

Answer: 69 to 73
22 After getting minimum subscription of shares, the company has to allot shares with in---------------days.
A 120
B 90
C 100
D 110

Answer: 120
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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

Answer: Takeover
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

Answer: 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

Answer: New values fixed
26 Shares received from the new company are recorded at -
A Market value
B Average price
C Face value
D None ofthe above

Answer: Market value
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

Answer: Uniform
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

Answer: 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

Answer: Amalgamation
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

Answer: Realisation A/c
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

Answer: Intrinsic 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

Answer: Amalgamation

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