corporate account MCQ.docx

DEPARTMENT OF COMMERCE St. Joseph’s College (Autonomous) Tiruhir!pp!lli " #$% %%$ Course Se m

&. Com P!per Coe

'

Title o/ the P!per

Corpor!te Aounting

St!// N! N!me

S. AR,0DASS

*+,CO+-%$%

' " 

,nits

,N'T 1 '

1.

Share allotment is a a) Personal A/C

b) Real A/C

c) Impersonal A/C

d) Nominal A/C

Answer:Personal A/C 2.

Share ap application ac account is is a a) Personal A/C

b) Real A/C

c) Nominal nal A/C

d) Imp Impersonal A/C

Answer: Personal A/C .

!he mi minimum imum share ap application mo mone" is is a) #$ o% %ace &alue o% share

b) 1'$ o% %ace &alue o% share

c) Rs. 1 per share

d) 1#$ o% %ace &alue o% share

Answer: #$ o% %ace &alue o% share (.

Prem Premiu ium m rece recei& i&eed on on iss issue ue o% shar sharee acco accoun untt is is sho shown wn on a) Assets side o% /S

b) *iabilities o% /S

c) Credit side o% P+* A/C

d) ,ebit side o% P+* A/C

Answer: *iabilities o% /S #.

Prem remium ium re recei cei&ed &ed on on iss issue ue o% sha share can be be use used d %or %or a) ,istribution o% di&idend c) !rans%errin

to

b) -ritin o%% capital losses

eneral d) Pa"in %ees to directors

Reser&e Answer: -ritin o%% capital losses 0.

!he !he rate rate o% disc discou oun nt on sha share cannot not eceed eed a) $

b) 0 $

c) #$

d) 1'$

Answer: 1'$ .

,iscount on on is issue o% o% sh shares A/C is is sh shown on on a) Assets side o% /S

b) *iabilities side o% /S

c) ,ebit side o% /S

d) Credit side o% P+* A/C

Answer: Assets side o% /S 3.

,iscount on issue o% share is a a) Re&enue loss c) ,e%erred ependiture

b) Capital loss re&enue d) Neithe itherr o% o% th the abo abo& &e

Answer: Capital loss 4.

Inte nterest rest on ca calls paid paid in ad& ad&aance ha has to to be be pa paid 5 a) ($

b) 0 $

c) $

d) 4 $

Answer: 0$ 1'.

Interest Interest 5 66666666 666666666666 6666 is char chared ed on on call6in call6in6arre 6arrears ars acco accordin rdin to !a !able 7A8 7A8 o% a) #$

b) 4 $

c) $

d) 12$

Answer: #$ 11. 11.

-hen -hen share sharess are are %or% %or%eit eited ed99 the the sha share re capi capita tall A/C is is debit debited ed b" a) Paid6up6capital

b) Called6up6capital

c) Calls6in6arrear

d) Nominal &alue o% such share

Answer: Called6up6capital 12. 12.

,isc ,iscou ount nt on on reis reissu suee o% %or %or%e %eit ited ed sha share ress shou should ld not not ec ecee eed d a) #$ subscribed capital

b) 1'$ reissued capital

c) !he amount recei&ed so %ar d) Neither o% the abo&e on %or%eited shares Answer: !he amount recei&ed so %ar on %or%eited shares 1.

!he pro%it on reissue o% %or%eited shares is trans%erred to a) eneral reser&e

b) Capital redemption reser&e

c) Capital reser&e

d) Pro%it + *oss A/C

Answer: Capital reser&e 1(.

I% share o% Rs. 1'9 on which Rs. 3 has been called and Rs. # has been recei& a) Rs.2

b) Rs. #

c) Rs. 3

d) Rs. 1'

Answer: Rs. 3 1#.

Riht shares are those share which are a) Issued b" a newl" %ormed b) irst o%%ered to the eistin sharehol compan" c) Issued to the directors o% the d) Issued to holders o% con&ertible deb compan" Answer: irst o%%ered to the eistin shareholders

10.

!he di%%erence between subscribed capital and called6up6capital is called a) ;ncalled capital

b) Calls6in6arrear

c) Paid6up capital

d) Calls6in6ad&ance

Answer: ;ncalled capital 1.

Capital redemption reser&e is created a)
b) !o meet leal re=uirement

c) oluntaril" A/C Answer: b) !o meet leal re=uirement 13.

!rans%er to capital redemption reser&e can be made %rom: a) Capital reser&e

b) or%eited shares A/C

c) eneral reser&e

d) Securities premium A/C

Answer: c) eneral reser&e 14.

!rans%er to capital redemption reser&e A/C is not allowed %rom: a) P+ * A/ C

b) ,ebenture redemption %und

c) -or?men8s accident %und

d) Pro%it prior to incorporation

Answer: d) Pro%it prior to incorporation 2'.

Capital redemption reser&e A/C can be used %or: a) -ritin o%% past losses

b) Issuin %ull" paid bonus shares

c) ,eclarin di&idends

d) ,eclarin bonus to emplo"ee

Answer: b) Issuin %ull" paid bonus shares 21.

!he premium on redemption o% pre%erence share can be pro&ided out o%: a) Securities premium

b) Insurance %und

c) or%eited shares A/C

d) ,epreciation reser&e A/C

Answer: a) Securities premium 22.

-hich section o% the companies Act 14#0 pro&ides %or issue and redemptio a) Section 3'

b) Section 3

c) Section A

d) Section 

Answer: 2.

,ebenture represent the: a) anaer8s business

share

in

a b) In&estment b" shareholders in a busi

c) *on term borrowin o% a d) None o% the abo&e business Answer: c) *on term borrowin o% a business 2(.

,ebenture holders are the: a) Customers o% the compan"

b) Creditors o% the compan"

c)
d) None o% the abo&e

Answer: b) Creditors o% the compan" 2#.

,ebenture are shown under the %ollowin headin in a compan"8s alance a) Secured loan

b) ;nsecured loan

c) Share capital

d) Current liabilities

Answer: a) Secured loan 20.

Accordin to companies Act 14449 the premium on issue o% debentures sho a) Share premium A/C

b) ,ebenture premium A/C

c) Securities premium A/C


Answer: c) Securities premium A/C 2.

,iscount on issue o% debenture is shown under the %ollowin headin in a c a) ied Assets

b) *oans and Ad&ances

c) in&estments

d) iscellaneous ependiture

Answer: d) iscellaneous ependiture 23.

Interest on debenture is normall" pa"able: a) Bal% "earl"

b) uarterl"

c) Annuall"

d) onthl"

Answer: a) Bal% "earl" 24.

A %ied percentae o% interest on debenture is calculated on: a) !he issue price o% debenture

b) !he nominal &alue o% debenture

c) !he %ace &alue o% debenture d) None o% the abo&e plus premium Answer: b) !he nominal &alue o% debenture '.

Pro%it on cancellation o% own debenture is trans%erred to: a) Pro%it and loss A/C

b) ,i&idend e=ualiDation A/C

c) Capital Reser&e

d) None 'o% the abo&e

Answer: c) Capital Reser&e ,N'T 1 ''

1.

A compan" is ha&in ('9''' e=uit" shares o% Rs 1# paid. I% the di&idend mar?et &alue o% share will be 666666666666 a) Rs 12.

b) Rs 3..

c) Rs 1'.

d) Rs 12.#.

Answer: d) Rs 12.#.

2.

!he relationship between normal rate o% return and P.F ratio is 666666666666666 a) In&erse.

b) ,irect.

c) Irreular.

d) None o% these.

Answer: a) In&erse. .

oodwill is a GGGGGGGGGGGGGGGGG. a) ied Asset.

b) Current Asset.

c) Intanible Asset.

d) !anible Asset.

Answer: c) Intanible Asset. (.

!he &alue o% oodwill is more in case o%666666666666666. a) Annuit" ethod.

b) Super pro%it ethod.

c) air &alue method.

d) CapitaliDation ethod.

Answer: a) #.

Annuit" ethod.

!he di&idend that is declared between A is6666666666666. a) Interim ,i&idend.

b) inal ,i&idend.

c) Semi ,i&idend.

d) Bal%6"earl" di&idend.

Answer: a) Interim ,i&idend. 0.

A business has a capital o% (''''' at the end . It has earned pro%its o% #'' be66666666666. a) (29'''.

b) 9#''.

c) #9'''.

d) ('9'''

Answer: b) 9#''. .

!he business has an a&erae capital o% 0''''' and the normal rate o% retur a) Rs. 1'9'''

b) Rs. 49'''

c) Rs. 1#9'''

d) Rs. 39'''

Answer: b) Rs. 49''' 3.

!he super pro%it o% a business is 0''' and the normal rate o% returns o% pro method is a) 0'9'''

b) 0''

c) #''

d) 0'

Answer: b) 0'' 4.

;nder the "ield method o% &aluation o% e=uit" share capital9. I% %or an e epected rate o% return is #$9 then the &alue o% e=uit" shares is66666666666666. a) 2#

b) #'

c) 33

d) 1''

Answer: d) 1'' ('.

or calculatin price earnins ratio it is essential to ?now66666666666. a) ar?et &alue per share.

b) Nominal &alue per share.

c) Paid6up &alue per share.

d) ;n paid6up &alue per share.

Answer: a) ar?et &alue per share. (1.

or calculatin &alue o% e=uit" share b" earnin capacit" method9 it is esse a) Nominal &alue per share.

b) Rate o% earnins.

c) ,i&idend per share.

d) Paid6up &alue per share.

Answer: a) Nominal &alue per share. (2.

Super pro%it is the di%%erence between: a) Capital emplo"ed and b) A&erae pro%it and normal pro%it. A&erae capital emplo"ed. c) Current "ear pro%it and last d) None o% the abo&e. "ear pro%it. Answer: b) A&erae pro%it and normal pro%it.

(.

!he a&erae return o% similar concerns should be considered as: a) A&erae pro%it.

b) Fpected rate o% return.

c) Normal rate o% return.


Answer: c) Normal rate o% return. ((.

rom the point o% &iew o% &aluation o% oodwill9 the term capital emplo"ed b": a) Shareholders onl". c) oth shareholders ,ebenture holders.

b) ,ebenture holders onl". and d) Shareholders9 ,ebenture holders an

Answer: a) Shareholders onl". (#.

or calculatin the &alue o% an e=uit" share b" intrinsic &alue method9 it is a) Normal rate o% Return.

b) Fpected rate o% Return.

c) Net Assets.

d) None o% the abo&e.

Answer: c) Net Assets. (0.

or calculatin the &alue o% an e=uit" share b" "ield method9 it is essential a) Fpected rate o% return.

b) Called up e=uit" share capital.

c) Capital emplo"ed.


Answer: a) Fpected rate o% return. (.

;nder net assets method9 the &alue o% a share depends on the amount that a) Pre%erence Shareholders.

b) F=uit" shareholders.

c) Creditors.


Answer: b) F=uit" shareholders. (3.

!he present &alue o% annuit" o% Re. 1 %or 3 "ears at 1'$ is Rs. 2.(3. Supe A. . C. ,. a) Rs. #9(1

b) Rs. 292''

c) Rs. 19(#

d) Rs. #(91(

Answer: d) Rs. #(91( (4.

In comparison to %ace &alue9 the &aluation o% shares is usuall": a) ore

b) *ess

c) F=ual

d) *ess or more

Answer: d) *ess or more #'.

-hen &alue o% shares is %ound out on the basis o% its di&idend or epected a) Asset >aluation ethod

b) Hield or Income >aluation ethod

c) air >alue ethod


Answer: b) Hield or Income >aluation ethod

#1.

In respect o% the &aluation o% shares9 the emplo"ed capital means: a) Cost price o% all the assets

b) ar?et &alue o% all the assets

c) oo? &alue o% all the assets

d) All the abo&e &alues

Answer: b) ar?et &alue o% all the assets #2.

!he &alue o% per shares on di&ision o% amount o% net assets b" number o% s a) Intrinsic >alue

b) oo? >alue

c) Cost Price

d) ar?et >alue

Answer: a) Intrinsic >alue #.

I% the net assets ta?en o&er b" the compan" are less than the purchase consi a) Secret Reser&e

b) oodwill

c) Capital Reser&e

d) eneral Reser&e

Answer: b) oodwill #(.

A characteristic o% a %ied asset is that it isGGGGGGGGGGGGG. a) intanible

b) used in the operations o% a business

c) held %or sale in the ordinar" d) not currentl" used in the business bu course o% the business Answer: c) held %or sale in the ordinar" course o% the business ##.

!he &alue o% ood will9 accordin to the simple pro%it method is a) !he product o% current "ears b) !he product o% last "ears pro%it and pro%it and no. o% "ears c) !he product o% a&erae pro%it d) !he product o% net "ears pro%it and o% the i&en "ears and no. o% "ears Answer: c)!he product o% a&erae pro%it o% the i&en "ears and no. o% "ears

#0.

Fpenses o% manaement is shown in a) Re&enue a/c

b) Pro%it or loss a/c.

c) Pro%it or loss a/c appropriate d) Nominal a/c. a/c Answer: a)Re&enue a/c

#.

!rans%er %ee is shown in a) Re&enue a/c


c) Pro%it or loss a/c appropriate d) Nominal. a/c. Answer: c) Pro%it or loss a/c appropriate a/c. #3.

*eal %ee shown onGGGGGGGGG a) Re&enue a/c.


c) Pro%it or loss a/c appropriate d) Nominal a/c a/c. Answer: b) #4.

Pro%it or loss a/c.

Public limited companies cannot issueGGGGGGGGGGGGG. a) F=uit" shares

b) ,e%erred shares

c) Pre%erence shares

d) ,ebentures

Answer: b) ,e%erred shares 0'.

Pre%erence di&idend is to be paid be%oreGGGGGGGGGGGGGGGGGG. a) Pa"ment interest

o%

c) ,istribution di&idend

debenture b) Pa"ment o% Income ta o%

e=uit" d) All the abo&e

Answer: c) ,istribution o% e=uit" di&idend ,N'T " '''

01.

Accountin standard %or Amalamation is a) AS63

b) AS62'

c) AS61(

d) AS6

Answer: c) AS61( 02.

Poolin o% interest methods is used to account %or Amalamation in the nat a) Purchase

b) Sales

c) erer


Answer: c) erer

0.

Purchase consideration9 as per AS61(9 should include cash and securitie companies. a) Shareholders

b) Shareholders + ,ebenture holders

c) Creditors. ,ebenture holders d) None o% the abo&e and Shareholders Answer: a) Shareholders 0(.

Fpenses o% li=uidation o% trans%eror compan" ma" be shown as 7Reimb areed to be paid b" : a) !rans%eror compan"

b) !rans%eree Compan"

c) oth the companies

d) Neither compan"

Answer: b) 0#.

!rans%eree Compan"

Fcess purchase consideration paid to the trans%eror compan" and debited Amalamation should be written o%% within a period o%: a) 2"ears

b) 3"ears

c) 2'"ears

d) #"ears

Answer:d) #"ears 00.

!he compan" which is amalamated into another compan" is called ‐‐‐‐‐‐‐ a) !rans%eror compan"

b) !rans%eree compan"

c) Boldin compan"

d) Subsidiar" co.

Answer: a) !rans%eror compan" 0.

-hen 2 or more companies carr"in on similar business o into li=uidation a) Amalamation

b) Absorption

c) Fternal reconstruction

d) Internal reconstruction.

Answer: a)Amalamation 03.

!he compan" which ta?es o&er another compan" is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. a) !rans%eror compan"

b) !rans%eree compan"

c) Statutor" Compan"

d) chartered compan"

Answer: b) !rans%eree compan" 04.

No li=uidation and no new %ormations identi%" the situation.

a) Absorption

b) Amalamation

c) Internal reconstruction

d) Consolidation

Answer: c) Internal reconstruction '.

-hen an eistin compan" ta?es o&er the business o% one or more eistin a) Amalamation

b) Absorption

c) Boldin

d) Internal reconstruction.

Answer: b) Absorption 1.

!his is a situation where there is compulsor" li=uidation and new %ormatio a) Amalamation

b) Absorption

c) Redemption

d) Internal reconstruction

Answer: a) Amalamation 2.

!he di%%erence between areed &alue o% asset and liabilities is called purch

‐‐‐‐‐‐‐‐‐‐‐ ethod. a) *ump sum

b) Net asset

c) Net pa"ment

d) intrinsic &alue.

Answer: b) Net asset .

-hich is the Journal entr" to be passed in the boo?s o% trans%eree compan" a) *i=uidator o% the trans%eror b) usiness purchase a/c ,r.!oli=uidat compan" ,r. !o business purchase. c) !rans%eree compan" a/c ,r.

d) !rans%eror compan" a/c ,r.

!o RealiDation a/c.

!o realiDation

Answer: b) usiness purchase a/c ,r. !o li=uidator o% the trans%eror compan". (.

As per AS K 1( purchase consideration is what is pa"able to a)

Shareholders

b) Creditors

c)

,ebenture holders

d) Shareholders and ,ebenture holders

#.

0.

.

Answer: a) Shareholders -hen amalamation is in the nature o% merer9 the accountin method to b a) F=uit" method

b) Purchase method

c) Poolin o% interests method

d) Consolidated method

Answer: c)Poolin o% interests method -hen amalamation is in the nature o% Purchase9 the accountin method to a) F=uit" method

b) Purchase method

c) Poolin o% interests method

d) Consolidated method

Answer: b) Purchase method Amalamation is said to be in the nature o% merer i%: a) All assets and liabilities o% b) usiness o% trans%eror compan" is in trans%eror compan" are ta?en o&er b" the trans%eree compan". c) Purchase consideration must d) All o% the abo&e be paid in e=uit" shares b" the trans%eree compan" ecept %or %raction shares.

3.

Answer: d) All o% the abo&e Amalamate adJustment account is opened in the boo?s o% trans%eree comp a) !he assets o% the trans%eror b) !he liabilities o% the trans%eror comp compan" c) !he statutor" reser&es o% the d) !he non K statutor" reser&es o% the t trans%eror compan"

4.

Answer: c) !he statutor" reser&es o% the trans%eror compan" oodwill arisin on amalamation is to be a) Retained in the boo?s o% the b) Amortised to income on a s"stemati trans%eree compan" c) AdJusted aainst reser&es or d) All o% the abo&e pro%it and loss account

balance 3'.

Answer: b) Amortised to income on a s"stematic basis normall" %i&e "ears ;nder poolin o% interest method the di%%erence between the purchase cons be adJusted to: a) eneral reser&e b) Amalamation adJustment account c) oodwill or capital reser&e

31.

Answer: a) eneral reser&e ;nder purchase method the di%%erence between the purchase consideration to: a) eneral reser&e b) Amalamation adJustment account c) oodwill or capital reser&e

32.

3(.

3#.


Answer: c) oodwill or capital reser&e or amalamation in the nature o% merer9 the shareholders holdin at least compan" becomes the e=uit" shareholders o% the trans%eree compan". a) #1$ b) 4'$ c) 44$

3.


d) 1''$

Answer: b) 4'$ AS K 1( is not applicable i% when trans%eree compan" ac=uires trans%eror c a) Ceases to eist

b) Separate entit" is Continue to eist

c) Applied in all cases


Answer: A *td. and  *td. o into li=uidation and a new compan" L *td. is %ormed. a) Absorption

b) Fternal reconstruction

c) Amalamation.


Answer: c) Amalamation. L *td. oes into li=uidation and a new compan" M *td. is %ormed to ta?e o a) Absorption


c) Amalamation


Answer: b) Fternal reconstruction

30.

3.

33.

L *td. oes into li=uidation and an eistin compan" M *td. purchases the a) Absorption


c) Amalamation.


Answer: Absorption !he share capital9 to the etent alread" held b" the purchasin compan"9 is a) Share capital account

b) Purchasin compan"s account

c) Realisation account.


Answer: c) Realisation account. In case o% intercompan" holdins9 the purchasin compan"9 at the time o% p the &endor compan" b" creditin: a) >endor compan"s account b) Shares in the &endor compan" acco c) Share capital account.

34.

4'.


Answer: b) Shares in the &endor compan" account or pa"in liabilities not ta?en o&er b" the purchasin compan"9 the &endo a) Realisation account

b) an? account

c) *iabilities account.


Answer: b) an? account !he &endor compan" trans%ers preliminar" epenses Oat the time o% absorpt a) F=uit" shareholders account

b) Realisation account

c) Purchasin compan"s account.


Answer: a) F=uit" shareholders account ,N'T 1 '

41.

!he parent oraniDation ac=uirin the controllin interest in another compa a) Subsidiar" Compan".

b) Boldin compan".

c) Pri&ate Compan"

d) ,eemed Public Compan".

Answer: a) Subsidiar" Compan". 42.

A compan" in which more than #'$ o% shares are held b" other compan" i a) Boldin compan".

b) Subsidiar" compan".

c) o&t. Compan".

d) Public compan".

Answer: a) Boldin compan". 4.

Pro%it made b" a subsidiar" compan" a%ter the date o% purchase o% shares b a) Re&aluation pro%its.

b) RealiDation pro%its.

c) Capital pro%its.

d) Re&enue pro%its.

Answer: b) RealiDation pro%its. 4(.

Pro%it made b" a subsidiar" compan" up to the date o% ac=uisition o% shares a) Re&aluation pro%its.


c) Capital pro%its.

d) Re&enue pro%its.

Answer: c) Capital pro%its. 4#.

!he ecess price paid b" a holdin compan" to ac=uire controllin interest a) Capital reser&e.

b) oodwill a/c.

c) Re&enue reser&e.


Answer: b) oodwill a/c. 40.

4.

43.

44.

!o ecess o% the share in e=uit" or net assets o% the subsidiar" o&er and abo a) Capital reser&e.

b) Cost o% control.

c) Re&enue reser&e.


Answer: b) Cost o% control. Preparation o% consolidated alance Sheet o% Boldin Co. and its subsidiar a) AS 11

b) AS K 22

c) AS 21

d) AS K 2

Answer: c) AS 21 !he share o% outsiders in the Net Assets in subsidiar" compan" is ?nown as a) outsiders liabilit"

b) Assets

c) subsidiar" compan"s liabilit"

d) inorit" Interest

Answer: d) inorit" Interest Pre6ac=uisition pro%it in subsidiar" compan" is considered as : a) Re&enue pro%it

b) Capital pro%it

c) oodwill


Answer: b) Capital pro%it 1''. Fcess o% cost o% in&estment o&er paid up &alue o% the shares is considered a) oodwill

b) Capital Reser&e

c) inorit" Interest


Answer: a) oodwill 1'1. Fcess o% paid up &alue o% the shares o&er cost o% in&estment is considered a) oodwill

b) Capital Reser&e

c) inorit" Interest

d) Non o% abo&e

Answer: b) Capital Reser&e 1'2. Pro%it earned be%ore ac=uisition o% share is treated as a) Capital pro%it

b) Re&enue pro%it

c) eneral Reser&e

d) Re&aluation *oss

Answer: a) Capital pro%it 1'. Pro%it earned a%ter ac=uisition o% share is treated as a) Capital pro%it

b) Re&enue pro%it

c) eneral Reser&e

d) Re&aluation *oss

Answer: b) Re&enue pro%it 1'(. Preparation o% consolidated statement as per AS 21 is a)
b) andator" %or listed Companies

c) andator" %or P&t. *td.

d) Companies *td. partnership %irm

Answer: b) andator" %or listed Companies 1'#. Boldin Co. share in capital pro%its o% subsidiar" compan" is adJusted in : a) Cost o% control

b) Shown on Assets side o% alance sh

c) Re&enue pro%it

d) None o% abo&e

Answer: a) Cost o% control 1'0. Boldin Co. share in re&enue pro%its o% subsidiar" compan" is adJusted in : a) Cost o% control

b) Shown on Assets side o% alance sh

c) Pro%it and loss account

d) None o% abo&e

Answer: c) Pro%it and loss account 1'. ;nrealised pro%it on oods sold and included in stoc? is deducted %rom : a) Capital Pro%it

b) Re&enue Pro%it

c) ied Assets

d) inorit" interest

Answer: b) Re&enue Pro%it 1'3. ace &alue debentures o% subsidiar" co. held b" Boldin Compan" is dedu a) ,ebentures

b) Cost o% control

c) inorit" interest

d) ,ebentures in consolidated balance

Answer: b) Cost o% control 1'4. inorit" Interest includes : a) Share in share capital

b) Share in Capital pro%it

c) Share in Re&enue pro%it

d) All o% the abo&e

Answer: d) All o% the abo&e 11'. !he !ime inter&al between the date o% ac=uisition o% shares in subsidiar" c ?nown as : a) Pre ac=uisition period b) Post ac=uisition period c) Pre commencement period d) Pre incorporation period. Answer: b) Post ac=uisition period 111. Pre ac=uisition di&idend recei&ed b" Boldin compan" is credited to a) pro%it + loss A/c

b) Capital pro%it

c) In&estment A/c

d) none o% the abo&e

Answer: c) In&estment A/c 112. Post Ac=uisition di&idend recei&ed b" Boldin Compan" is debited to a) an? A/c

b) pro%it + loss A/c

c) ,i&idend A/c

d) In&estment A/c

Answer: b) pro%it + loss A/c 11. -hich Fchane rate will be considered %or con&ersion o% share capital o% a)
b) closin rate

c) A&erae Rate

d) Rate o% which date share ac=uired Oa

Answer: d) Rate o% which date share ac=uired Oactual) 11(. A subsidiar" compan" shall be ecluded %rom consolidation when: a) Control is intended to be b) It operates under se&ere lon term re %unds to the parent temporar" c) Alwa"s included consolidation

%or d) oth a and b.

Answer: d) oth a and b. 11#. A holdin compan" is one which holds more than a) 2/ share capital o% subsidiar" compan".

b) #'$ share capital o% subsidiar" com

c) ' $ share capital o% o&ernment Compan".

d) None o% the abo&e. .

Answer: b) #'$ share capital o% subsidiar" compan". 110. A compan" in which more than #'$ o% shares are held b" other compan" i a) Boldin compan".

b) Subsidiar" compan".

c) o&t. Compan".

d) Public compan".

Answer: a) Boldin compan". 11. Pro%it made b" a subsidiar" compan" up to the date o% ac=uisition o% shares a) Re&aluation pro%its.


c) Capital pro%its.

d) Re&enue pro%its.

Answer: c) Capital pro%its. 113. ;nrealised pro%it included in stoc? is : a) ,educted %rom stoc? combined balance sheet.

in b) ,educted %rom P+* a/c balance in c

c) ,educted %rom stoc? and d) Shown separatel" in asset side o% C P+* a/c balance in combined balance sheet. Answer: c) ,educted %rom stoc? and P+* a/c balance in combined balance 114. Pro%it made b" a subsidiar" compan" up to the date o% ac=uisition o% shares

a) Re&aluation pro%its.


c) Capital pro%its.

d) Re&enue pro%its.

Answer: c) Capital pro%its. 12'. !he ecess price paid b" a holdin compan" to ac=uire controllin interest a) Capital reser&e.

b) oodwill a/c.

c) Re&enue reser&e.


Answer: a) Capital reser&e. ,N'T 1 

121. Contributor" is a a) ;n secured creditor

b) Pre%erential creditor

c) Share holder

d) debenture holder

Answer: c) Share holder 122. *ist 7A8 in statement o% a%%airs i&es the list o%: a) Assets speci%icall" pleded

b) Assets not speci%icall" pleded

c) Pre%erential creditor

d) ;nsecured creditors

Answer: b) Assets not speci%icall" pleded 12. *ist 7F8 statement o% a%%airs i&es the list o% : a) Pre%erential creditor

b) debenture holder

c) ;nsecured creditors

d) Secured creditors

Answer: c) ;nsecured creditors 12(. Secured creditors are shown in the statement o% a%%airs under: a) *ist A

b) *ist 

c) *ist C

d) *ist ,

Answer: b) *ist  12#. Pre%erential creditors are shown in the statement o% a%%airs under: a) *ist ,

b) *ist 

c) *ist C

d) *ist A

Answer: c) *ist C 120. !he proceeds o% assets not speci%icall" pleded and the surplus o% the asset

a) Pre%erential creditors

b) ;nsecured creditors

c) *eal chares9 *i=uidators d) Pre%erence share holders remuneration and li=uidation epenses Answer: c) *eal chares9 *i=uidators remuneration and li=uidation epens 12. An" sum due to an emplo"ee out o% pro&ident %und is eempt o%: a) ;nsecured creditor

b) Pre%erential creditors

c) Secured creditors

d) Partiall" secured creditors

Answer: Pre%erential creditors 123. *i=uidators %inal statement o% A/C is prepared: a)
b) Rs. (9'''

c) Rs. 09'''

d) Rs. 1(9'''

Answer: b) Rs. (9''' 1'. -hen the sale proceeds o% pleded securit" is not su%%icient to pa" o%% se to: a) ;nsecured creditors


c) F=uit" share capital

d) Pre%erence share capital

Answer: a) ;nsecured creditors 11. -hen li=uidated compan" has ade=uate cash to pa" o%% liabilities9 the inter a) ;pto date o% commencement b) ;pto the date o% actual pa"ment o% li o% insol&enc" proceedins c) ;pto the date o% pa"ment to d) None o% these the shareholders

Answer: b) ;pto the date o% actual pa"ment o% liabilities 12. Salaries due to cler? is pre%erential %or a period not eceedin: a) !wo months

b) !hree months

c) our months

d) i&e months

Answer: c) our months 1. aimum GGGGGGGGGGG can be treated as pre%erential salar" and waes. a) 2''''

b) 2#'''

c) ''''

d) (''''

Answer: a) 2'''' 1(. Q *ist o% contributories are not liable: a) I% shares are %ull" paid up

b) or liabilities a%ter the" are ceases to

c) I% present shareholders paid the unpaid amount o% the shares trans%erred b" them.

d) All o% the abo&e

Answer: All o% the abo&e 1#. *i=uidator is appointed b" court a) In case o% windin up

compulsor" b) embers &oluntaril" windin up

c) In case o% creditors d) None o% these &oluntaril" windin up Answer: a) In case o% compulsor" windin up 10. *i=uidator is appointed b" members a) In case o% windin up


c) In case o% creditors d) None o% these &oluntaril" windin up Answer: b) embers &oluntaril" windin up

1. *i=uidator is appointed b" creditors and members a) In case o% windin up


c) In case o% creditors d) None o% these &oluntaril" windin up Answer: c) In case o% creditors &oluntaril" windin up 13. -hen compan" is wound up the entire person who ceased to be the share GGGGGGGGG. a) *ist F

b) *ist 

c) *ist .

d) *ist B

Answer: a) *ist F 14. *ist B shows GGGGGG account a) Secured loan

b) Pre%erred.

c) ,ebentures.

d) Creditors.

Answer: a) Secured loan 1('. A public compan" can be wound up b" the court i% the number o% members a) .

b) #.

c) .

d) 1'.

Answer: b) # 1(1. !he compan" has to submit the statement o% a%%airs to the o%%icial li=uidato a) 1(da"s

b) 21 da"s

c) ' da"s

d) (# da"s

Answer: a) 1(da"s 1(2. A compan" can be li=uidated b" GGGGG. a) Compulsor" windin up b" b) >oluntar" windin up b" the membe the court. c) -indin up under super&ision o% the court

the d) All o% the abo&e

Answer: a) Compulsor" windin up b" the court.

1(. F=uit" shareholders are 66666666666. a) Creditors o% the compan"

b)
c) Customers o% the compan"


Answer: b)
b)
c) Customers o% the compan"


Answer: d) None o% the abo&e 1(#. aimum GGGGGGGGGGG can be treated as pre%erential salar" and waes. a) 2''''

b) 2#'''

c) ''''

d) (''''

Answer: a) 2'''' 1(0. Pre%erence di&idend is to be paid be%ore66666666666. a) Pa"ment interest c) ,istribution di&idend

o%

debenture b) Pa"ment o% Income ta o%

e=uit" d) All the abo&e

Answer: b) Pa"ment o% Income ta 1(. *ist B shows GGGGGG account a) Secured loan

b) Pre%erred.

c) ,ebentures.

d) Creditors.

Answer: a) Secured loan 1(3. An" sum due to an emplo"ee out o% pro&ident %und is eempt o%: a) ;nsecured creditor


c) Secured creditors

d) Partiall" secured creditors

Answer: b) Pre%erential creditors 1(4. *ist 7F8 statement o% a%%airs i&es the list o% : a) Pre%erential creditor

b) debenture holder

c) ;nsecured creditors

d) Secured creditors

Answer: c) ;nsecured creditors 1#'. Secured creditors are shown in the statement o% a%%airs under: a) *ist A

b) *ist 

c) *ist C

d) *ist ,

Answer: b) *ist  

corporate account MCQ.docx

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