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 : 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 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
Last Answer : B)Absorption
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 : 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
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 : 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
Last Answer : (B) Absorption
Description : When company purchases the business of another company ........ comes into existence. (A) Amalgamation (B) Absorption (C) External Reconstruction (D) Internal Reconstruction
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 : 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 : When the expenses of liquidation are to be borne by the vendor company, then the vendor company debits: A. Realisation account B. Bank account C. Goodwill account. D. Purchasing company account
Last Answer : A. Realisation account
Description : When the expenses of liquidation are to be borne by the purchasing company, then the purchasing company debits: A. Vendor company's account B. Bank account C. Goodwill account. D. Realisation A/c
Last Answer : C. Goodwill account.
Description : When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.
Last Answer : (C) Realisation A/c
Description : When the Vendor (seller) company agrees to bear liquidation expenses, it will debit (A) Realisation Account (B) Bank Account (C) Goodwill Account (D)None of the above
Last Answer : (A) Realisation Account
Description : When the purchasing company bears the liquidation expenses, it will debit the expenses to (A)Vendor Company‘s Account (B) Bank Account (C)Goodwill Account (D)None of the above
Last Answer : (C)Goodwill Account
Description : Under external reconstruction there is one liquidation and one formation.
Last Answer : TRUE
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 : 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 : 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 : External reconstruction is more or less same as that of amalgamation in the nature of purchase.
Description : The first item in order of payment to be made by liquidator is A. Liquidation expenses B. Secured creditor C. Preferential creditor D. Preference shareholder
Last Answer : A. Liquidation expenses
Description : In amalgamation of companies there are two or more liquidation and one formation.
Description : Under the Insolvency and Bankruptcy Code, 2016, debts owed to a secured creditor in the event such secured creditor has relinquished security ranks equally with ___________. a) insolvency ... period of twelve months preceding the liquidation commencement date d) dues to Central Government
Last Answer : b) workmen’s dues for a period of 24 months prior to liquidation commencement date
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 : Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R
Last Answer : (A) Goodwill Rs. 8,777
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 : ________ 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 case of a limited company, the term financial statements includes A. Profit and loss and balance sheet B. Profit and loss account, profit and loss appropriation account and balance sheet C. Balance sheet D. None of the above
Last Answer : B. Profit and loss account, profit and loss appropriation account and balance sheet C
Description : Minimum number of members in case of public company is---------. A. 4 B. 5 C. 6 D. 7
Last Answer : D. 7
Description : Accounting standard (AS) 14 not distinguish between amalgamation and absorption.
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 : 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 : 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 : Notification regarding commencement on cessation of a state of war is the responsibility of - (1) Ministry of Home Affairs (2) Ministry of Defence (3) Ministry of External Affairs (4) None of the above
Last Answer : (3) Ministry of External Affairs Explanation: Notification regarding commencement or cessation of a state of war is the responsibility of Ministry of External Affairs.
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 : 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
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
Description : Most important advantage of an IC is its a. Easy replacement in case of circuit failure b. Extremely high reliability c. Reduced cost d. Low powers consumption
Last Answer : b. Extremely high reliability