Computerized Accounting Practices

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 Computerized Accounting Practices

Q1 | Computerized accounting requires transaction data to be enteredinto………………………
  • Accounting Package.
  • Accounting software
  • Accounting estimates
  • none
Answer: Accounting Package.
Q2 | The choice of customized accounting packages is made on the basis of the………….
  • Vendor
  • Purchaser
  • Buyer
  • Client
Answer: Vendor
Q3 | The ability with which the computers remain functional to serve the user is termedas……………………………………………………
  • Reliability
  • Accuracy
  • Flexible
  • Measurable
Answer: Reliability
Q4 | Enterprise resource planning is an ……………………………..
  • Accounting Package.
  • Accounting software
  • Accounting estimates
  • none
Answer: Accounting software
Q5 | AS400 is a ………………………………accounting software.
  • Financial
  • Management
  • Cost
  • none
Answer: Financial
Q6 | While calculating purchase price, the following values of assets are considered
  • Book value
  • New values fixed
  • Average values
  • Market values
Answer: Average values
Q7 | Which of the following statement is correct?
  • The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only
  • The amount of Goodwill or Capital Reserve is found out in the books of vendor company only.
  • Goodwill = Net Assets – Purchase price
  • The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.
Answer: The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only
Q8 | If the two companies have different accounting policies in respect of the same item,then they make necessary changes to adopt .............. accounting policies.
  • LIFO method
  • FIFO method
  • Weighted method
  • Uniform
Answer: Uniform
Q9 | The Amalgamation Adjustment Account appears in the books, it is shown under theheading of ......... in the balance sheet.
  • Reserve and Surplus
  • Fixed Assets
  • Investments
  • Miscellaneous expenditure
Answer: Miscellaneous expenditure
Q10 | If amalgamation is in the ..............., the General Reserve or Profit and Loss A/cbalance will not be shown in the balance sheet.
  • Form of Merger
  • Form of purchase
  • Net assets method
  • Consideration method
Answer: Form of purchase
Q11 | If the intrinsic values of shares exchanged are not equal, the difference is paid in...........
  • Cash
  • Debenture
  • Pref. share
  • Assets
Answer: Cash
Q12 | In case of .............., one existing company takes over the business of anothercompany and no new company is formed.
  • Amalgamation
  • Absorption
  • Reconstruction
  • None of the Above
Answer: Absorption
Q13 | In amalgamation of two companies
  • Both companies lose their existence
  • Both companies continue
  • Any one company continues
  • none
Answer: Both companies lose their existence
Q14 | When purchasing company pays purchase consideration, it will be debited to
  • Business purchase account
  • Assets account
  • Liquidator of selling company’s account
  • none
Answer: Liquidator of selling company’s account
Q15 | When the purchasing company bears the liquidation expenses, it will debit theexpenses to
  • Vendor Company’s Account
  • Bank Account
  • Goodwill Account
  • none
Answer: Goodwill Account
Q16 | When the Vendor (seller) company agrees to bear liquidation expenses, it will debit
  • Realisation Account
  • Bank Account
  • Goodwill Account
  • none
Answer: Realisation Account
Q17 | When the purchasing company does not take over a particular liability and thevendor company pays that liability, it will debit it to
  • Realisation Account
  • Bank Account
  • Liability Account
  • none
Answer: Realisation Account
Q18 | When the Net Assets are less than the Purchase Consideration, the difference willbe
  • Debited to Goodwill A/c.
  • Debited to General Reserve
  • none of these
  • none
Answer: Debited to Goodwill A/c.
Q19 | While calculating purchase consideration ............... values of assets is to beconsidered.
  • Book value
  • Revalued price
  • Average price
  • Capital
Answer: Revalued price
Q20 | Net Assets minus Capital Reserve is _________
  • Goodwill
  • Total assets
  • Purchase consideration
  • None of these
Answer: Purchase consideration
Q21 | Hitesh Ltd.’s purchase consideration is Rs.12,345 and Net Assets Rs.3,568,then..........
  • Goodwill Rs. 8,777
  • Capital Reserve Rs. 8,777
  • Goodwill Rs. 15,913
  • Capital Reserve Rs. 15,913
Answer: Goodwill Rs. 8,777
Q22 | The original amount of preference share capital should be transferred to ............account in the time of amalgamation in the books of vendor co.
  • Preference shareholders Account
  • Capital Reserve Account
  • Equity share capital Account
  • Equity share capital Account
Answer: Preference shareholders Account
Q23 | The share capital, to the extent already held by the purchasing company, is closedby the vendor company by crediting it to:
  • Share capital account
  • Purchasing company's account
  • Realisation account.
  • none
Answer: Realisation account.
Q24 | In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration, surrenders the shares in the vendor company by crediting:
  • Vendor company's account
  • Shares in the vendor company account
  • Share capital account.
  • none
Answer: Shares in the vendor company account
Q25 | The vendor company transfers preliminary expenses (at the time of absorption) to:
  • Equity shareholders' account
  • Realisation account
  • Purchasing company's account.
  • none
Answer: Realisation account
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