Under net assets method , accumulated profits should not form part of liabilities.

Under net assets method , accumulated profits should not form part of liabilities.
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The assets which is not taken under the net assets method of calculating Purchase Consideration is: (A) Loose Tools (B) Bills Receivable (C) Machinery (D) Share issued expenses

Description : The assets which is not taken under the net assets method of calculating Purchase Consideration is: (A) Loose Tools (B) Bills Receivable (C) Machinery (D) Share issued expenses

Last Answer : (D) Share issued expenses

___________ items are assets and liabilities other than monetary items.

Description : ___________ items are assets and liabilities other than monetary items.

Last Answer : Non-monetary,

Monetary items _________ (a) Are assets and liabilities to be received or paid in money (b) Are assets to be received in fixed or determinable amounts of money (c) Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money (d) None of the above

Description : Monetary items _________ (a) Are assets and liabilities to be received or paid in money (b) Are assets to be received in fixed or determinable amounts of money (c) Are money held and assets and ... to be received or paid in fixed or determinable amounts of money (d) None of the above

Last Answer : Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money

Monetary items are defined by AS 11 as assets and liabilities other than non-monetary items.

Description : Monetary items are defined by AS 11 as assets and liabilities other than non-monetary items.

Last Answer : FALSE

In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.

Description : In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered.

Last Answer : FALSE

In financial accounting of a chemical plant, which of the following relationship is invalid? (A) Assets = equities (B) Assets = liabilities + net worth (C) Total income = costs + profits (D) Assets = capital

Description : In financial accounting of a chemical plant, which of the following relationship is invalid? (A) Assets = equities (B) Assets = liabilities + net worth (C) Total income = costs + profits (D) Assets = capital

Last Answer : (D) Assets = capital

Liabilities (not accumulated profits) of a company include— A. General reserve B. Pension fund C. Dividend equalisation fund. D. Retain earning

Description : Liabilities (not accumulated profits) of a company include— A. General reserve B. Pension fund C. Dividend equalisation fund. D. Retain earning

Last Answer : B. Pension fund

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

Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

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Last Answer : (B) Rs. 4,00,000

Himanshi Ltd. purchase consideration is Rs.22,345 and Net Assets Rs.6,568, then........... (A) Goodwill Rs. 15,777 (B) Capital Reserve Rs. 15,777 (C) Goodwill Rs. 28,913 (D) Capital Reserve Rs. 28,913

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Last Answer : (A) Goodwill Rs. 15,777

Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

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When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these

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Last Answer : (A) Debited to Goodwill A/c

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Description : Unmarked applications can be distributed among the underwriters in the ratio of gross liabilities.

Last Answer : TRUE

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Description : When the liquated company has adequate cash to pay off all liabilities , the interest on liabilities should be paid : a) Upto the date of commencement of insolvency proceedings b) Upto the date of actual payment of liabilities c) Upto the date of payment to shareholders d) None of the these

Last Answer : d) None of the these

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Last Answer : TRUE

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Last Answer : (B) Equity Shareholders Account

List A in statement of affairs gives in the list of a) Assets specifically pledged b) Assets not specifically pledged c) Preferential creditors d) Unsecured creditors

Description : List A in statement of affairs gives in the list of a) Assets specifically pledged b) Assets not specifically pledged c) Preferential creditors d) Unsecured creditors

Last Answer : b) Assets not specifically pledged

Surplus , if any , from the creditors having been secured on the assets specially pledged , is added to the estimated realisable value of the assets not specifically pledged.

Description : Surplus , if any , from the creditors having been secured on the assets specially pledged , is added to the estimated realisable value of the assets not specifically pledged.

Last Answer : TRUE

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Description : Fixed assets, inventories and investments in Equity shares are examples of ____________ items.

Last Answer : Non-monetary,

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Last Answer : Rs.10.70

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Last Answer : FALSE