MCQOPTIONS
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MCQOPTIONS
This section includes 6 Mcqs, each offering curated multiple-choice questions to sharpen your Uncategorized topics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
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. | absorption |
| D. | absorption |
| Answer» B. absorption | |
| 2. |
Shares received from the new company are recorded at - |
| A. | face value |
| B. | face value |
| C. | market value |
| D. | face value |
| Answer» D. face value | |
| 3. |
If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... |
| A. | cash |
| B. | debenture |
| C. | pref. share |
| D. | assets |
| Answer» B. debenture | |
| 4. |
If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet |
| A. | form of merger |
| B. | form of purchase |
| C. | net assets method |
| D. | consideration method |
| Answer» C. net assets method | |
| 5. |
The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. |
| A. | reserve and surplus |
| B. | fixed assets |
| C. | investments |
| D. | miscellaneous expenditure |
| Answer» E. | |
| 6. |
In case of .............., one existing company takes over the business of another company and no new company is formed |
| A. | amalgamation |
| B. | absorption |
| C. | reconstruction |
| D. | none of the above |
| Answer» C. reconstruction | |