Corporate Accounting Set 25
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 25
Q1 | A Banking company required to prepare its balance sheet according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in theschedule III to the banking
- Form A
- Form B
- Form C
- Form D
Q2 | A Banking company required to prepare final accounts according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ schedule to thebanking Regulation Act.
- III
- IV
- V
- VI
Q3 | A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company required to prepare its balance sheet according to form A in the IIIschedule to the banking Regulation Act.
- Insurance company
- Joint stock company
- Banking company
- None of these.
Q4 | A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company required to prepare its project and loss account according to Form B inthe Schedule III to the Banking Regulation Act.
- Insurance company
- Joint stock company
- Banking company
- None of these.
Q5 | The global key professional accounting body is
- The International Accounting Standards Board
- The Institute of Chartered Accountants of India
- The Financial accounting standard boa
Q6 | International Public Sector Accounting Standards were issued by
- International Accounting Standards Board.
- International Auditing Practices Committee.
- International Federation of Accountants.
- None of the above
Q7 | The process of recording financial data up to trial balance is
- Book keeping
- Classifying
- Summarizing
- Analyzing
Q8 | In which of the following cases, accounting estimates are needed?
- Employs benefit schemes
- Impairment of losses
- Inventory obsolescence
- All of the above
Q9 | The long term assets that have no physical existence but, possess a value isknown as,
- Current assets
- Fixed assets
- Intangible assets
- Investments
Q10 | Which of these best explains fixed assets?
- Are bought to be used in the business.
- Are expensive items bought for the business
- Are items which will not wear out quickly
- Are of long life and are not purchased specifically for resale
Q11 | The assets that can be easily converted into cash within a short period (i.e., 1year or less is known as,
- Current assets
- Fixed assets
- Intangible assets
- Investments
Q12 | 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.
Q13 | 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
Q14 | If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt .............. accounting policies.
- Same
- Different
- Important
- Some
Q15 | When two or more companies carrying on similar business decide to combine, a newcompany is formed, it is known as…………………………
- Merger
- Amalgamation
- Absorption
- Demerger
Q16 | When one of the existing companies take over business of another company orcompanies, it is known as…………………………………
- Merger
- Amalgamation
- Absorption
- Demerger
Q17 | In case of .............., one existing company takes over the business of anothercompany and no new company is formed
- Merger
- Amalgamation
- Absorption
- Demerger
Q18 | While calculating purchase consideration ............... values of assets is to beconsidered.
- Total
- Half
- Net
- 25%
Q19 | Net Assets minus Capital Reserve is………………………
- Purchase consideration
- Goodwill
- Liabilities
- Total Assets
Q20 | The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co.
- Equity shareholders
- Preference share holders
- Debenture holders
- vendors
Q21 | ………………………………………………..method the amount of depreciation expenses remains same throughout the useful life of a fixed assets
- Straight line method
- Annuity methods
- Purchase value method
- Written down value methods
Q22 | Depreciation arise because of………………………..
- Abnormal quality
- Normal wear and tear
- Excessive use of a product
- Low quality product
Q23 | Loss Prior to incorporation is treated as ........... Loss, and Vendor’s Salaries arechargeable to ................ incorporation period.
- Pre
- During
- Post
- In between
Q24 | Which type of asset class includes those assets which have only definite use andbecome valueless when the yield is over?
- Fixed asset
- Current asset
- Fictitious asset
- Wasting asset
Q25 | Shares received from the new company are recorded at –
- Face value
- Average price
- Market value
- None of the above