Description : When company purchases the business of another company ........ comes into existence. (A) Amalgamation (B) Absorption (C) External Reconstruction (D) Internal Reconstruction
Last Answer : (B) Absorption
Description : X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. Liquidation
Last Answer : A. Absorption
Description : When one of the existing companies take over business of another company or companies, it is known as ........... (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction
Last Answer : (B)Absorption
Description : 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)Internal reconstruction (D)External reconstruction
Last Answer : (A)Amalgamation
Description : X Ltd. goes into liquidation and a new company Z Ltd. is formed to take over the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. commencement.
Last Answer : B. External reconstruction
Description : Both of the old companies will not exist in ........... (A) Internal reconstruction (B) Absorption (C) External reconstruction (D) Amalgamation
Last Answer : (D) Amalgamation
Description : A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of A. Absorption B. External reconstruction C. Amalgamation. D. commencement
Last Answer : C. Amalgamation.
Description : 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
Last Answer : B)Absorption
Description : When one of the existing companies take over business of another company or companies, it is known as ........... (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction
Last Answer : (B) Revised Value
Description : Merger of two or more companies or business undertaking to form new company mean A. Reconstruction B. Amalgamation C. Absorption D. Commandment of Company
Last Answer : B. Amalgamation
Description : 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) Internal reconstruction (D) External reconstruction
Last Answer : (A) Amalgamation
Description : 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
Description : In amalgamation of two companies (A)Both companies lose their existence (B)Both companies continue (C)Any one company continues (D)None of the above
Last Answer : (A)Both companies lose their existence
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
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%
Description : Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above
Last Answer : C. Goodwill or capital reserve
Description : Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above
Last Answer : A. General reserve
Description : Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above
Last Answer : B. Amortised to income on a systematic basis normally five years
Description : External reconstruction is more or less same as that of amalgamation in the nature of purchase.
Last Answer : TRUE
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
Description : If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____ a) Dr Drawing A/c & Cr Purchases A/c b) Dr Office Expenses A/c & Cr Motor Car A/c c) Dr Motor Car A/c & Cr Purchases A/c d) Dr Motor Car & Cr Sales A/c
Last Answer : c) Dr Motor Car A/c & Cr Purchases A/c
Description : The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account
Last Answer : (A) Preference shareholders Account
Description : 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
Last Answer : (B)Form of purchase
Description : 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
Last Answer : (D)Miscellaneous expenditure
Description : ________ means making a smaller business, part of a larger one, so that the smaller company in effect no longer exists. 1. Merger 2. Amalgamation 3. Absorption 4. Invention 5. None of these
Last Answer : Absorption
Description : In amalgamation of two companies (A) Both companies lose their existence (B) Both companies continue (C) Any one company continues
Last Answer : (A) Both companies lose their existence
Description : The vendor company transfers preliminary expenses (at the time of absorption) to: A. Purchasing Company account B. Realisation account C. Purchasing company's account. D. Equity shareholders' account
Last Answer : D. Equity shareholders' account
Description : Mr. X is a dealer in electronic goods (refrigerator, washing machine, air conditioners, televisions, etc.) He purchased two air conditioners and installed in his showroom. In the books of X the ... will be debited to A] Drawing account B] Capital Account C] Fixedassets D] Purchases account
Last Answer : C] Fixedassets
Description : M/s Stationery Mart will debit the purchase of stationery to _______ a) Purchases A/c b) General Expenses A/c c) Stationery A/c d) None
Last Answer : a) Purchases A/c
Description : Value of goods withdrawn by the proprietor for his personal use should be credited to ____ a) Capital A/c b) Sales A/c c) Drawings A/c d) Purchases A/c
Last Answer : d) Purchases A/c
Description : Which of the following is not a Real Account? a) Cash A/c b) Investments A/c c) Out standing rent A/c d) Purchases A/c
Last Answer : c) Out standing rent A/c
Description : A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in ... is violated. (a) Money measurement (b) Conservatism (c) Consistency (d) None of these
Last Answer : (b) Conservatism
Description : Goods withdrawn by the proprietor for his personal use are A. Shown as a deduction from the purchases B. Shown as a deduction from the sales C. Treated as sales at cost price D. Added to the purchases
Last Answer : A. Shown as a deduction from the purchases
Description : What are the important external factors that constitute the economic environment of Business ? A. economic condition B. economic policy C. economic system D. all of the above
Last Answer : D. all of the above
Description : Micro factors of external business environment does not include A. Competitors B. Customers C. Government Policies D. None of these
Last Answer : C. Government Policies
Description : When a company taken over another one and clearly becomes the new owner, the action is called A. Merger B. Acquisition C. Strategic Alliance D. None of the above
Last Answer : B. Acquisition
Description : Accounting standard (AS) 14 not distinguish between amalgamation and absorption.
Description : The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to: A. Share capital account B. Purchasing company's account C. Realisation account. D. Business purchase account
Last Answer : C. Realisation account.
Description : When the purchasing company makes payment of the purchase consideration, it debits: A. Business purchase account B. Assets account C. Vendor company's account. D. Realisation A/c
Last Answer : C. Vendor company's account.
Description : Company images and brand equity is factor affecting business A. Externally B. Internally C. Government Policy D. None of these
Last Answer : A. Externally
Description : When purchasing company pays purchase consideration, it will be debited to (A)Business purchase account (B)Assets account (C) Liquidator of selling company’s account (D)None of the above
Last Answer : (C) Liquidator of selling company’s account
Description : In case of public limited company, after getting the-----------the company can start the business A. Memorandum of Association B. Table A C. Certificate of commencement of business D. Articles of Association
Last Answer : C. Certificate of commencement of business
Description : which chips using special external equipment can reprogram a. ROM b. PROM c. SAM d. RAM
Last Answer : b. PROM
Description : The two major types of computer chips are a. External memory chip b. Primary memory chip c. Microprocessor chip d. Both b and c
Last Answer : d. Both b and c
Description : The ALU of a computer responds to the commands coming from a. Primary memory b. Control section c. External memory d. Cache memory
Last Answer : b. Control section
Description : The first electronic general purpose digital computer built by Motley and Accrete called ENIAC did not work on the stored program concept. How many number s could it store in its internal memory? a. 100 b. 20 c. 40 d. 80
Last Answer : b. 20
Description : Which computer memory is used for storing programs and data currently being processed by the CPU? a. Mass memory b. Internal memory c. Non-volatile memory d. PROM
Last Answer : b. Internal memory
Description : Which method does not consider the time value of money A. Net present value B. Internal Rate of Return C. Average rate of return D. Profitability Index
Last Answer : C. Average rate of return
Description : Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use? A. Financial accounting B. Tax accounting C. Management accounting D. Inflation accounting
Last Answer : C. Management accounting