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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