Corporate Accounting Set 14

Bachelor of Business Administration (BBA),

Bachelor of Commerce (B Com)

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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 14

Q1 | CDT stands for….
  • Company Direct Tax
  • Corporate Dividend Tax
  • Combined Direct Tax
  • None of these
Answer: Corporate Dividend Tax
Q2 | An item which may or may not be the liability of the company due to happening of certainevent is…………
  • Current Liability
  • Fixed Liability
  • Contingent Liabilit
  • None of these
Answer: Contingent Liabilit
Q3 | Advance tax paid is shown in the balance sheet under the head……….
  • Current Liabilities
  • Loans and Advances
  • Fixed Assets
  • None of these
Answer: Loans and Advances
Q4 | Preliminary expenses not written off are shown in the balance sheet under the head…
  • Current Assets
  • Investments
  • Current Liabilities
  • Miscellaneous Expenditure
Answer: Miscellaneous Expenditure
Q5 | If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferredto Reserve shall be………..
  • 10%
  • 2.5%
  • 5%
  • Nil
Answer: Nil
Q6 | ………is concerned with accounting for amalgamation.
  • AS – 10
  • AS – 12
  • AS – 14
  • AS – 16
Answer: AS – 14
Q7 | In ……………, a new company is formed to take over the business of two or more existingcompanies which go into liquidation
  • Amalgamation
  • External reconstruction
  • Absorption
  • Internal reconstruction
Answer: Amalgamation
Q8 | Amalgamation is done for ………….
  • Eliminating competition
  • Dominating the market
  • Enjoying the benefits of large scale operation
  • All of these
Answer: All of these
Q9 | Company which is amalgamated into another company is called ……………..
  • Transferor company
  • Transferee Company
  • Purchasing company
  • Holding company
Answer: Transferor company
Q10 | …………….is the company into which a company is amalgamated.
  • Transferor company
  • Transferee Company
  • Subsidiary company
  • Holding company
Answer: Transferee Company
Q11 | Purchase consideration is payable to …………..
  • Creditors
  • Shareholders
  • Debenture holders
  • All of these
Answer: Shareholders
Q12 | In …..., a new company is formed to take over the business of an existing company whichgoes into liquidation.
  • Amalgamation
  • External reconstruction
  • Absorption
  • Internal reconstruction
Answer: External reconstruction
Q13 | The purchase of an existing company which goes into liquidation by another existingcompany is known as …………..
  • Amalgamation
  • External reconstruction
  • Absorption
  • Internal reconstruction
Answer: Absorption
Q14 | Pooling of interest method is used in the case of ……………..
  • Amalgamation in the nature of purchase
  • External reconstruction
  • Amalgamation in the nature of merger
  • Internal reconstruction
Answer: Amalgamation in the nature of merger
Q15 | Amalgamation adjustment account is opened in the books of Transferee Company toincorporate …………..
  • The assets o transferor company
  • The statutory reserves of Transferor Company
  • The liabilities of transferor company
  • The statutory reserves of Transferee Company.
Answer: The statutory reserves of Transferor Company
Q16 | Loss on realisation is transferred to …………..
  • Transferee Company Account
  • Transferor Company Account
  • Shareholders Account
  • Creditors Account
Answer: Shareholders Account
Q17 | ………… is a statutory reserve
  • General Reserve
  • Export profit reserve
  • Dividend equalization reserve
  • Capital Reserve
Answer: Export profit reserve
Q18 | Liquidation expenses paid by the transferee company are debited to ………
  • Liquidation expense Account
  • Liquidators Account
  • Preliminary expenses Account
  • Goodwill Account
Answer: Goodwill Account
Q19 | Under purchase method, the excess of net assets over purchase consideration is ……….
  • Debited to goodwill account
  • Credited to goodwill account
  • Credited to capital reserve account
  • Debited to capital reserve account
Answer: Credited to capital reserve account
Q20 | X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of5%. The premium should be debited to ………
  • Realisation Account
  • Shareholders Account
  • P&L Account
  • None of these
Answer: Realisation Account
Q21 | Which of the following is not a statutory reserve?
  • General reserve
  • Development rebate reserve
  • Investment allowance reserve
  • Workmen compensation fund
Answer: General reserve
Q22 | Realisation Account is a …………..
  • Real Account
  • Personal Account
  • Nominal Account
  • Suspense Account
Answer: Nominal Account
Q23 | ……….is not transferred to realisation account
  • Goodwill
  • Fictitious asset
  • Trademark
  • All of these
Answer: Fictitious asset
Q24 | 19. Trade liabilities include ………..
  • Creditors
  • Debentures
  • Bank overdraft
  • All of these
Answer: Creditors
Q25 | 20. Purchase consideration includes ………..
  • Cash
  • Shares
  • Debentures
  • All of these
Answer: All of these
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