If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A)Cash (B)Debenture (C)Pref. share (D)Assets

If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A)Cash
(B)Debenture  
(C)Pref. share  
(D)Assets
by

1 Answer

Answer :

(A)Cash
by

Related questions

If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A) Cash (B) Debenture (C) Pref. share (D)Assets

Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A) Cash (B) Debenture (C) Pref. share (D)Assets

Last Answer : (A) Cash

Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully paid. Average expected profit is Rs.8,500. Transfer to reserves is 10%. Pref. dividend is payable. NRR is 9%. The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20s

Description : Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20

Last Answer : Rs.10.70

The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares

Description : The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares

Last Answer : B. Preference Shares

Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit

Last Answer : D. Out of free reserves built out of genuine profit

Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to be carried on by the transferee company. C. Purchase consideration must be paid in equity shares by the transferee company except for fraction shares. D. All of the above

Description : Amalgamation is said to be in the nature of merger if: A. All assets and liabilities of transferor company are taken over by the transferee company. B. Business of transferor company is intended to ... paid in equity shares by the transferee company except for fraction shares. D. All of the above

Last Answer : D. All of the above

Following is the Source of fund A. Decrease in balance of Debenture B. Decrease in Long term Liability C. Increase in Long term loan D. Redemption of Shares

Description : Following is the Source of fund A. Decrease in balance of Debenture B. Decrease in Long term Liability C. Increase in Long term loan D. Redemption of Shares

Last Answer : C. Increase in Long term loan

A newly established company cannot be successful in obtaining finance by way of A. issue of equity capital B. issue of preference share C. issue of debenture D. None of the above

Description : A newly established company cannot be successful in obtaining finance by way of A. issue of equity capital B. issue of preference share C. issue of debenture D. None of the above

Last Answer : C. issue of debenture

Which of the following statement is correct? (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only (B)The amount of Goodwill or Capital Reserve is found out in the books of vendor company only. (C)Goodwill = Net Assets –Purchase price (D)The face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

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Last Answer : (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only

The liability of the shareholders of a public limited company is limited to the extent of– (A) Par value of the share (B) Paid up value of the shares (C) Market price of the shares (D) Intrinsic value of the shares

Description : The liability of the shareholders of a public limited company is limited to the extent of– (A) Par value of the share (B) Paid up value of the shares (C) Market price of the shares (D) Intrinsic value of the shares

Last Answer : Answer: Paid up value of the shares

Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000

Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000

Last Answer : (A) Rs. 48,000

Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than the Cash flow C. The flow of funds must arise due to external and not internal transactions of the business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Description : Which of the following statements is not correct? A. For the purpose of Funds Flow Statement, the term 'fund ' generally refers to net working capital B. Funds flow is a wider concept than ... business D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

Last Answer : D. The capitalisation of reserves by the issue of bonus shares also involves flow of funds

While calculating purchase consideration ............... values of assets is to be considered. (A) Book value (B) Revalued price (C) Average price (D) Capital

Description : While calculating purchase consideration ............... values of assets is to be considered. (A) Book value (B) Revalued price (C) Average price (D) Capital

Last Answer : (B) Revalued price

While calculating purchase price, the following values of assets are considered (A)Book value (B)New values fixed (C)Average values (D)Market values

Description : While calculating purchase price, the following values of assets are considered (A)Book value (B)New values fixed (C)Average values (D)Market values

Last Answer : (B)New values fixed

Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.

Description : Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.

Last Answer : B. Wages paid for the erection of plant and machinery.

Fixed assets are held by business for _____ a) Converting into cash b) Generating revenue c) Resale d) None of the above

Description : Fixed assets are held by business for _____ a) Converting into cash b) Generating revenue c) Resale d) None of the above

Last Answer : b) Generating revenue

Debenture holder are____________ A. Creditor Of Company B. Debtor of Company C. Owner of Company D. Members of Company

Description : Debenture holder are____________ A. Creditor Of Company B. Debtor of Company C. Owner of Company D. Members of Company

Last Answer : A. Creditor Of Company

When shares issued at premium which of the following account is credited? A. Share premium account B. Share first call account C. Share allotment account D. Share forfeited account

Description : When shares issued at premium which of the following account is credited? A. Share premium account B. Share first call account C. Share allotment account D. Share forfeited account

Last Answer : A. Share premium account

The minimum share Application money is -----------. A. 5% of the face value of shares B. 10% of the issue price of shares C. Re. 1 per share D. 15% of the face value of shares

Description : The minimum share Application money is -----------. A. 5% of the face value of shares B. 10% of the issue price of shares C. Re. 1 per share D. 15% of the face value of shares

Last Answer : A. 5% of the face value of shares

Unpaid calls are shown in the balance sheet of a company A. By adding it to the share capital B. By deducting it from the called-up share capital C. Under the head 'current assets' D. Under the head 'current liabilities'

Description : Unpaid calls are shown in the balance sheet of a company A. By adding it to the share capital B. By deducting it from the called-up share capital C. Under the head 'current assets' D. Under the head 'curent liabilities'

Last Answer : B. By deducting it from the called-up share capital

Which one of the following is an example of sources of funds? A. Decrease in share capital B. Increase in long-term liabilities C. Decrease in long-term liabilities D. Increase in fixed assets

Description : Which one of the following is an example of sources of funds? A. Decrease in share capital B. Increase in long-term liabilities C. Decrease in long-term liabilities D. Increase in fixed assets

Last Answer : B. Increase in long-term liabilities

Rent paid to landlord should be credited to a) Landlords account b) Rent account c)Cash account d) Expense account

Description : Rent paid to landlord should be credited to a) Landlords account b) Rent account c)Cash account d) Expense account

Last Answer : c)Cash account

If wages are paid for construction of business premises ______ A/c is credited and _____ A/c is debited. a) Wages, Cash b) Premises, Cash c) Cash, Wages d) Cash, Premises

Description : If wages are paid for construction of business premises ______ A/c is credited and _____ A/c is debited. a) Wages, Cash b) Premises, Cash c) Cash, Wages d) Cash, Premises

Last Answer : d) Cash, Premises

X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many shares should X Ltd. issue to Maruti Udyog Ltd. for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares

Description : X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many ... . for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares

Last Answer : Answer: 28,000 shares

Dividend is paid on _______ A. On Issued Share Capital B. On Subscribed Share Capital C. On Called up Share Capital D. On Paid up Share Capital

Description : Dividend is paid on _______ A. On Issued Share Capital B. On Subscribed Share Capital C. On Called up Share Capital D. On Paid up Share Capital

Last Answer : D. On Paid up Share Capital

Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid

Description : Corporate dividend tax is _______ A. Computed on Net profit B. Computed on Share Capital C. Computed on Goss Profit D. Computed on Dividend paid

Last Answer : D. Computed on Dividend paid

If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............ of the share is to be determined (A) Fair Value (B) Face Value (C) Intrinsic Value (D) Yield Value

Description : If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............ of the share is to be determined (A) Fair Value (B) Face Value (C) Intrinsic Value (D) Yield Value

Last Answer : (C) Intrinsic Value

Liquidity Preference means - (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery

Description : Liquidity Preference means - (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery

Last Answer : (2) holding assets in the form of cash Explanation: Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in ... than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation.

Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets

Description : Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets

Last Answer : c) Decrease in creditors

Which of the following is not a cash inflow? A. Decrease in debtors B. Issue of shares C. Decrease in creditors D. Sale of fixed assets

Description : Which of the following is not a cash inflow? A. Decrease in debtors B. Issue of shares C. Decrease in creditors D. Sale of fixed assets

Last Answer : C. Decrease in creditors

Liquidity Preference means (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery

Description : Liquidity Preference means (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery

Last Answer : holding assets in the form of cash 

Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Last Answer : Answer: Equity Shareholders

Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares

Description : Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares

Last Answer : B. Equity shares

For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. A. 51% B. 90% C. 99% D. 100%

Description : For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. A. 51% B. 90% C. 99% D. 100%

Last Answer : B. 90%

The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio

Last Answer : A. Net profit before interest, tax and dividend / Capital employed

Working capital will increase A. If Current Asset Decrease B. If Current Liability Decrease C. If Current LiabilityIncrease D. If new shares are issued

Description : Working capital will increase A. If Current Asset Decrease B. If Current Liability Decrease C. If Current LiabilityIncrease D. If new shares are issued

Last Answer : B. If Current Liability Decrease

To issue shares on Discount mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Description : To issue shares on Discount mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Last Answer : C. Issue on less than face value of shares

To issue shares on Par mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Description : To issue shares on Par mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Last Answer : A. Issue on face value of shares

To issue shares on premium mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Description : To issue shares on premium mean A. Issue on face value of shares B. Issue on more than face value of shares C. Issue on less than face value of shares D. Initial public offer

Last Answer : B. Issue on more than face value of shares

Cancelation of shares mean A. Reissue of shares B. Valuation of shares C. Forfeiture of shares D. Allotment of shares

Description : Cancelation of shares mean A. Reissue of shares B. Valuation of shares C. Forfeiture of shares D. Allotment of shares

Last Answer : C. Forfeiture of shares

The shares received from the new company is recorded at (A) Face value (B) Market value (C) Average price (D) None of these

Description : The shares received from the new company is recorded at (A) Face value (B) Market value (C) Average price (D) None of these

Last Answer : (B) Market value

Shares received from the new company are recorded at - (A)Face value (B)Average price (C)Market value (D)None of the above

Description : Shares received from the new company are recorded at - (A)Face value (B)Average price (C)Market value (D)None of the above

Last Answer : (C)Market value

fter getting minimum subscription of shares, the company has to allot shares with in--------- ------days. A. 90 B. 100 C. 110 D. 120

Description : fter getting minimum subscription of shares, the company has to allot shares with in--------- ------days. A. 90 B. 100 C. 110 D. 120

Last Answer : D. 120

Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend

Description : Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend

Last Answer : D. for distribution of dividend

Premium on issue of shares can be used for -----------. A. distribution of dividend B. writing of f capital losses C. transferring to general reserve D. paying fees to directors

Description : Premium on issue of shares can be used for -----------. A. distribution of dividend B. writing of f capital losses C. transferring to general reserve D. paying fees to directors

Last Answer : B. writing of

Premium received on issue of shares is shown on-----------. A. asset side of the balance sheet B. liability side of the balance sheet C. credit side of the P&L a/c. D. debit side of the P & L a/c

Description : Premium received on issue of shares is shown on-----------. A. asset side of the balance sheet B. liability side of the balance sheet C. credit side of the P&L a/c. D. debit side of the P & L a/c

Last Answer : B. liability side of the balance sheet

Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these

Description : Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these

Last Answer : 2

Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Description : Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Last Answer : D] Expenses should be matched with the revenue of the period.

An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-What would be the effect on the total asset and total liabilities in the balance sheet? A] Assets increased by Rs.800000 and liabilities decreased by Rs.800000 B] Assets decreased by Rs.800000 and liabilities increased by Rs.800000 C] Assets increased by Rs.1000000 and liabilities increased by Rs.800000 D] Assets increased by Rs.800000 and liabilities increased by Rs.800000

Description : An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-What would be the effect on the total asset and total liabilities in the ... and liabilities increased by Rs.800000 D] Assets increased by Rs.800000 and liabilities increased by Rs.800000

Last Answer : D] Assets increased by Rs.800000 and liabilities increased by Rs.800000

As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets

Description : As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets

Last Answer : a) Expenses

Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 andinvestments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be a) 2,00,000 b) 1,00,000 c) 3,00,000 d) 4,00,000

Description : Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 andinvestments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be a) 2,00,000 b) 1,00,000 c) 3,00,000 d) 4,00,000

Last Answer : b) 1,00,000