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

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
by

2 Answers

Answer :

(B) Absorption
by

Answer :

(B) Revised Value
by

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External reconstruction is more or less same as that of amalgamation in the nature of purchase.

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Last Answer : TRUE

Absorption is said to take place when an existing company takes over one or more existing companies.

Description : Absorption is said to take place when an existing company takes over one or more existing companies.

Last Answer : TRUE

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

Last Answer : TRUE

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Amalgamation of companies is governed by - (A) AS -14 (B) AS-11 (C) AS- 13 (D) AS-9

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Amalgamation of companies is governed by AS 13.

Description : Amalgamation of companies is governed by AS 13.

Last Answer : FALSE

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Description : In amalgamation of companies there are two or more liquidation and one formation.

Last Answer : TRUE

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Last Answer : TRUE

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Two or more companies combining to form a new company is called absorption.

Description : Two or more companies combining to form a new company is called absorption.

Last Answer : False

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.

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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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On amalgamation , payment to creditors do not form part Purchase of Consideration

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Last Answer : TRUE

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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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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When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to______ (A) Realisation Account (B) Bank Account (D) Liability Account (D) Creditors Account

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