Corporate Accounting- II MCQ

B. Com- II  Semester- IV

Corporate Accounting Paper- II

Multiple Choice Questions

Module- I Amalgamation, Absorption and Reconstruction of the Companies

1. …………… is the form of business combination.

a) Amalgamation                     b) Absorption                         

c) Reconstruction                    d) All of the above

2. ………… means combining or consolidating two or more companies and to form a new company.

a) Amalgamation                   b) Absorption                         

c) Reconstruction                    d) All of the above

3. Accounting for amalgamation is made as per………….

a) AS-10                      b) AS- 16                    c) AS- 14                     d) AS- 20

4. There are ………….  Methods of amalgamation.

a) Four                         b) Two                                    c) Five                         d) Three

5. ……….. Means purchase of a business of an existing company by some other existing company.

a) Amalgamation                     b) Absorption                                   

c) Reconstruction                    d) All of the above

6. Under ……….. Form of combination no new company is formed.

a) Amalgamation                     b) Absorption                                   

c) Reconstruction                    d) All of the above

7. Under…………… form of combination two or more companies are liquidated and one new company is formed.

a) Amalgamation                   b) Absorption                         

c) Reconstruction                    d) All of the above

8. According to AS-14, Absorption means amalgamation in the nature of …………..

a) Purchase                b) Merger                    c) Sales                        d) All of the above

 

9. Companies going into liquidation are termed as …………. Companies.

a) Vendor                   b) Vendee                   c) Purchasing               d) Transferee

10. The Company purchasing or taking over business is termed as …………. Company.

a) Vendor                    b) Vendee                   c) Selling                     d) Transferor

11. Purchase price payable by the purchasing company to the purchased company for taking over its assets and liabilities is called ……………

a) Remuneration                      b) Net asset                

c) Purchase Cost                     d) Purchase Consideration

12. Purchase price is paid generally in the form of ………..

a) Shares                      b) Debentures              c) Cash                        d) All of the above

13. Which of the following is the method of calculation of purchase consideration?

a) Lump Sum Method                         b) Net Asset Method

c) Net Payment Method                     d) All of the above

14. Net Asset means…………

a) Total of tangible assets less total of third party liabilities

b) Total of all assets less total of all liabilities

c) Total of Intangible assets less Total of third party liabilities

d) None of the above

15. Which of the following is the fictitious asset?

a) Discount on Issue of Shares/Debentures                b) Underwriters Commission

c) Preliminary Expenses                                              d) All of the above

16. Profit or Loss on realisation transferred to ……………account.

a) Preference shareholders                              b) Equity shareholders

c) Debenture holders                                       d) all of the above

17. If Preference shareholders or debenture holders of the purchased company are to be repaid at premium, the amount of premium is debited to ………….. account.

a) Preference shares or debentures                  b) Preference shareholders or Debenture holders c) Realisation                                           d) Premium

18. Profit on sale of asset and repayment of liabilities are credited to ………… account

a) Particular Asset and liabilities                     b) Profit

 c) Shareholders                                              d) Realisation

Module- II Valuation of Shares

1. Company fixes the value of its shares is termed as……………..

a) Market Value          b) Face Value             c) Intrinsic Value                    d) Fair Value

2. There are …………… methods of valuation of shares.

a) One             b) Two             c) Three          d) Four

3. Which of the following is the method of valuation of shares.

a) Net Asset Method              b) Yield Method                    

c) Fair Value Method              d) All of the above

4. Net Asset means…………

a) Total of Realisable assets less total of third party liabilities

b) Total of all assets less total of all liabilities

c) Total of Intangible assets less Total of third party liabilities

d) None of the above

5. Intrinsic Value per share = ……………  Number of Equity Shares.

a) Tangible Assets       b) Gross Assets           c) Net Assets               d) Intangible Assets

6. Under …………… method prospective earnings of the company are considered.

a) Net Asset Method              b) Yield Method                   

c) Fair Value Method              d) All of the above

7. …………. = Assets - Liabilities

a) Working Capital        b) Net Assets                 c) Capital Employed        d) None of the above

8. Capitalisation = ………….. ÷ Normal Rate of Return × 100

a) Net Assets               b) Dividend                

c) Capitalisation          d) Amount Available to Equity Shareholders

9. Market price per share under capitalisation method = ………………… Number of Equity shares.

a) Net Assets               b) Dividend                 c) Capitalisation         d) Rate of Profit

10. Market price per share on the basis of dividend declared by the company = …………÷ Normal Rate of Return × 100.

a) Net Assets               b) Dividend in terms of Rupee                    

c) Capitalisation          d) Rate of Profit

11. Rate of Profit = ……………………. ÷ Paid-up Equity share Capital × 100

a) Net Assets               b) Dividend                

c) Capitalisation          d) Amount Available to Equity Shareholders

12. Market Price under earnings basis = …………… ÷ Normal Rate of Return × Paid-up Amount per share.

a) Net Assets               b) Dividend                 c) Capitalisation          d) Rate of Profit

13. Fair value = ……………..

a) Intrinsic value + Market Value ÷ 2                    b) intrinsic value - Market Value ÷ 2  

c) Intrinsic value ÷ Market Value                               d) None of the above

Module- III Accounting for Liquidation of Companies

1. …………… means bringing to an end the corporate life of a company under legal proceedings.

a) Absorption              b) Liquidation                        c) Merger                     d) Amalgamation

2. Which companies can be liquidated?

a) Solvent        b) Insolvent     c) Both of the above              d) None of the above

3. ………….. means inability to pay its debts.

a) Solvency                 b) Insolvency              c) both of the above    d) none of the above

4. An administrator called………….. is appointed to carry out the work related to liquidation.

a) Manager                  b) Administrator                     c) Auditor                   d) Liquidator

 5. What is the work of liquidator?

a) Realise the assets    b) Collect calls in arrears and called-up uncalled capital

c) Paid off debts         d) All of the above

6. If any surplus remained after payment of debt then it is distributed among the ……….. in accordance with their rights.

a) Debenture holders                           b) Preference shareholders                 

c) Equity shareholders                      d) All of the above

7. Which of the following is type of liquidation?

a) Compulsory liquidation                                                      b) Voluntary liquidation

c) Liquidation under the supervision of the Court                 d) All of the above

8. When winding up of a company is being done under the order of the court, it is called ……….. winding up.

a) Compulsory                                                                       b) Voluntary

c) Winding up under the supervision of the Court                 d) All of the above

9. Winding up done without any intervention of the court is called as…………. Winding up.

a) Compulsory                                                                         b) Voluntary

c) Winding up under the supervision of the Court                 d) All of the above

10. In case of voluntary liquidation liquidator is appointed by the …………

a) Members     b) Creditors     c) both of the above   d) None of the above

11. In Priority or Order of payment who is ranked five in liquidation?

a) Liquidation expenses                      b) Unsecured creditors

c) Secured debentures/ creditors      d) Preference shareholders

12. Liquidator gets his remuneration in the form of …………. Based on assets realised and payments made to unsecured creditors.

a) Salary                      b) Wages                     c) Brokerage                d) Commission

Module- IV Computer Application through Accounting Package Tally

1. …................... is used for all accounting works from preparation of journal vouchers to preparations of final accounts.

a) Word           b) Excel           c) SPSS           d) Tally

2. In tally ……………….. options are provided.

a) One             b) Two             c) Three          d) Four

3. Tally is …………..

a) Fixed           b) Flexible                  c) Rigid           d) All of the above

4. …………means providing the basic information, like name of the company, address of the company, telephone number, PAN, GST No, Currency symbol etc. of the company of which the accounts are to be maintained in Tally.

a) Recording Transaction                    b) Creating Company          

c) Getting Report                                d) Preparing Ledger

5. There are ……….. Modes of by which ledgers can be created by tally.

a) One             b) Two             c) Three          d) Four

6. …………… means any original document which is used as an evidence of the entries made in the books of accounts like invoice, suppliers bills, receipts, counter foils, pay in slip etc.

a) Receipt        b) Journal        c) Vouchers                d) Files

7. There are ………….. types of vouchers.

a) Five             b) Eight           c) Nine                        d) Ten

8. …………voucher is prepared where a transaction relates to cash and bank

a) Purchases voucher                           b) Sales voucher         

c) Contra voucher                             d) Debit or Credit Note

9. All transactions related to payment either in cash or cheque are recorded in ……voucher.

a) Purchases voucher                           b) Sales voucher         

c) Contra voucher                               d) Payment Voucher

10.………….. voucher is an adjustment voucher used for non-cash transactions.

a) Purchases voucher                           b) Journal Voucher  

c) Contra voucher                               d) Payment Voucher

11. Any purchase transaction in respect of goods or services is recorded in ………. Voucher.

a) Purchases voucher                                    b) Sales voucher         

c) Contra voucher                               d) Payment Voucher

12. Any sales transaction in respect of goods or services is recorded in ………. Voucher.

a) Purchases voucher                           b) Sales voucher       

c) Contra voucher                               d) Payment Voucher

13. A ……….. is issued when a purchaser returns goods to us out of goods sold to him.

a) Debit Note              b) Credit Note                        c) Return Note                        d) Goods Note

14. A ……….. is Prepared when you returns goods to supplier.

a) Debit Note              b) Credit Note             c) Return Note                        d) Goods Note

15. ……….. is the ultimate report of the financial accounting system.

a) Trial Balance           b) Ledgers                   c) P & L A/c                d) Balance Sheet

16. The ultimate aim of data entry is to ……………..

a) Record Transaction             b) Create Company    

c) Get Report                         d) Prepare Ledger