Merger of two or more companies or business undertaking to form new company mean A. Reconstruction B. Amalgamation C. Absorption D. Commandment of Company

Merger of two or more companies or business undertaking to form new company mean  A. Reconstruction
B. Amalgamation
C. Absorption
D. Commandment of Company
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1 Answer

Answer :

B. Amalgamation
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Related questions

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

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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

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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

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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

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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

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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

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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

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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

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Last Answer : (B) Revised Value

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

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________ 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

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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

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When company purchases the business of another company ........ comes into existence. (A) Amalgamation (B) Absorption (C) External Reconstruction (D) Internal Reconstruction

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Both of the old companies will not exist in ........... (A) Internal reconstruction (B) Absorption (C) External reconstruction (D) Amalgamation

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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

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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

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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

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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

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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

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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

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A merger is also called as ______________ 1. an amalgamation 2. a consortium 3. a joint venture 4. an acquisition 5. None of these

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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

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The complete absorption of one company by another, wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity, is called a…. A. Acquisition B. Consolidation. C. Merger D. Spinof

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The complete absorption of one company by another, wherein the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity, is called a…. A. Acquisition B. Consolidation. C. Merger D. Spinoff

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During a merger and acquisition transaction, the ability to find and use good comparable data for a valuation is relatively ____________. a) easy because each successful company within an industry uses the same ratios b) easy because public stock price fluctuation is not sufficient or erratic enough to make a difference c) difficult because book value is adjusted in small companies as FIFO is the method of choice and in public companies’ book value is static due to LIFO d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued

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Accounting standard (AS) 14 not distinguish between amalgamation and absorption.

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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

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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

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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

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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

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If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt.............. Accounting policies. (A)Lifo method (B)Fifo method (C)Weighted method (D)Uniform

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