Question 1

If the remuneration to liquidator is payable as a percentage of collection_______________

Accepted Answer

The remuneration to a liquidator, when calculated as a percentage of collections, typically excludes the opening cash and bank balances. This is because the liquidator's fee is based on the amount of money they are able to collect or realize from the company's assets during the liquidation process, not the funds that were already available at the beginning.

Question 2

If a part of the issue of share or debenrues is underwritten, it is termed as__________________-

Accepted Answer

When only a part of the issue of shares or debentures is underwritten, it is referred to as partial underwriting. This means not the entire issue is covered by underwriters, only a portion of it.

Question 3

In case of Buy Back at a discount the amount of discount is transferred to _________________

Accepted Answer

The amount of discount on buyback is transferred to the Capital Reserve Account, as it is considered a capital profit.

Question 4

'Pooling of interest' is a method of_____________________

Accepted Answer

'Pooling of interest' is a method used in accounting for amalgamations. It treats the companies involved as if they have always been a single entity, rather than one company acquiring another.

Question 5

Fictitious Assets are to be transferred to ___________________

Accepted Answer

Fictitious assets are not real assets but are deferred expenses that are to be written off over a period against the firm's earnings. They are usually transferred to internal reconstruction accounts when a company undergoes restructuring, as they do not represent recoverable value.

Question 6

The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________

Accepted Answer

The proceeds of assets not specifically pledged and the surplus of the assets specifically pledged are first available for legal charges, liquidators' remuneration, and expenses. These costs are prioritized to ensure the legal and administrative expenses related to the liquidation or financial restructuring process are covered.

Question 7

The underwriting commission in the case of debentures as per Companies Act, should not exceed_________

Accepted Answer

The answer of The underwriting commission in the case of...

Question 8

Non-Monetary Items which are carried in terms of historical cost determinated in a foreign currency should be reporte using exchange rate at the date of _____

Accepted Answer

Non-monetary items that are measured in terms of historical cost in a foreign currency should be reported using the exchange rate at the date of the transaction. This is because the historical cost principle requires assets to be recorded at their cost at the time of the transaction.

Question 9

A feature which is common in all cases or merger__________________-

Accepted Answer

A merger typically involves the purchase of one company by another company, which is a common feature in all cases of mergers.

Question 10

Accounts of LLP are to be audited by _____________

Accepted Answer

The accounts of a Limited Liability Partnership (LLP) are required to be audited by a Chartered Accountant. This is because Chartered Accountants are professionals who are qualified to audit financial statements and ensure compliance with various accounting and financial regulations.

Question 11

In the case of members voluntary winding up liquidator is appointed by _____________

Accepted Answer

In a members' voluntary winding up, the liquidator is appointed by the company in a general meeting. This is because the members of the company have decided to voluntarily wind up the company's affairs and therefore have the authority to appoint the liquidator to oversee the process.

Question 12

R LTD. Issued a debenture of Rs.100 each at Rs.90. The underwriting commission will be paid on___________

Accepted Answer

The underwriting commission is paid on the issue price, which in this case is Rs.90, the price at which the debentures were issued.

Question 13

Conversion of currency is covered in AS______

Accepted Answer

AS 11 deals with the effects of changes in foreign exchange rates, including the conversion of currency.

Question 14

Accounting for Absorption is governed by______________

Accepted Answer

AS 14 (Accounting Standard 14) deals with accounting for amalgamations, which includes absorption.

Question 15

Certificate of incorporation of LLP is issued by_______________

Accepted Answer

The certificate of incorporation for a Limited Liability Partnership (LLP) is issued by the Registrar of Companies. This is because LLPs are registered under the Companies Act, making the Registrar of Companies the appropriate authority for issuing their incorporation certificates.

Question 16

Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________

Accepted Answer

Retirement benefits of employees exceeding Rs.20,000 per employee are treated as preferential creditors. This means they are given priority over other debts in the event of liquidation, but they do not have the security or collateral backing that secured creditors have.

Question 17

M LTD. Issued share at a face value of Rs. 100 with a premium of Rs.20 per share. The underwrting commission will be calculated on __________

Accepted Answer

Underwriting commission is typically calculated on the issue price of the shares, which in this case is the face value (Rs. 100) plus the premium (Rs. 20), totaling Rs. 120.

Question 18

The Balance in receivable as on the date of Balance sheet is converted at rate______________

Accepted Answer

Receivables on the balance sheet date are converted at the exchange rate prevailing on that date, as they represent the current value of the amounts to be received in foreign currency.

Question 19

According to AS 14, Transferor company means the company__________

Accepted Answer

The transferor company is the one which is amalgamated into another company, according to AS 14. This term specifically refers to the company that is being merged or absorbed into another entity during the process of amalgamation.

Question 20

LLP can be dissolved by the order of____________

Accepted Answer

An LLP (Limited Liability Partnership) can be dissolved by the order of the National Company Law Tribunal (NCLT).

Quiz 10: Accounting and Corporate Finance