Deck 9: Accounting

Question 1

Pro-rata payment is applicable when the cash available for competing liabilities of the same class is..

A)insufficient
B)adequate
C)reserved
D)paid to partners

Answer 1

insufficient

Question 2

Purchase consideration can be calculated by…

A)market value method
B)book value method
C)net assets method
D)balance sheet method

Answer 2

net assets method

Question 3

ABC & Co. takes over the running business of PQR & Co. This is known as…

A)internal reconstruction
B)absorption
C)external reconstruction
D)pouncing

Answer 3

absorption

Question 4

The Liability of the members of a limited company is…

A)unlimited
B)restricted
C)as per the articles of association
D)limited

Question 5

Foreign Debtors appear at the year end on...

A)the balance sheet rate of exchange
B)fair value
C)original value
D)agreed value

Question 6

Accounting Standard 11 (AS 11) is prescribed by the…

A)international financial reporting standards
B)the companies\ act
C)institute of chartered accountants of india
D)the government of india

Question 7

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

A)2.5% of the price at which debenture are issued
B)3% of the price at which the debentures are issued
C)4% of the price at which debentures are issued
D)5% of the price at which debentures are issued

Question 8

The Buy Back of equity shares is governed by________________ of Companies Act

A)section 117 c
B)section 80
C)section 100 to 104
D)section 68

Question 9

A feature which is common in all cases or merger__________________-

A)liquidation of at least two companies
B)liquidation at least one existing company & formation of another company
C)formation of at least one new company
D)purchase of one comapany by another company

Question 10

Changes in the rate of Preference dividend payable in future without any change in the amount of capital is known as ___

A)reduction of share capital
B)variation of shareholders rights
C)alteration of share capital
D)compromise/ arrangement

Question 11

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

A)the registrar of companies
B)the central government
C)the company in general meeting
D)the board of directors

Question 12

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

A)rs.95
B)rs.90
C)rs.105
D)rs.100

Question 13

Buy Back refers to______________

A)refund of debentures
B)refund of preference share capital
C)refund of equity share capital
D)purchase of own debenture

Question 14

Accounting for Absorption is governed by______________

A)as 1
B)as 13
C)as 11
D)as 14

Question 15

Equity Shareholders giving up their claim to the reserves & accumulated profit amounts to______________

A)reduction of share capital
B)alteration of share capital
C)compromise/ arrangement
D)variation of shareholders rights

Question 16

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

A)secured creditors
B)unsecured creditors
C)over-riding preferential creditors
D)preferential creditors

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 __________

A)rs.120
B)rs.90
C)rs.100
D)rs.80

Question 18

Buy Back must be completed within_______________

A)3 months
B)6 months
C)2 months
D)12 months

Question 19

According to AS 14, Transferor company means the company__________

A)into which a company is amalgamated
B)which is amalgamated into another company
C)which is newly formed
D)which is any one old company into new comapny

Question 20

In Interanl Reconstruction____________________

A)only on company goes into liquidation
B)no company is liquidated
C)one or more companies go into liquidation
D)two or more companies are liquidated

Question 21

Accrued Holiday remuneration becoming payable to any workman is treated as ________________________

A)unsecured creditors
B)preferential creditors
C)over-riding preferential creditors
D)secured creditors

Question 22

If the whole of the issue of shares or debentures is underwritten it is known as_______________________

A)partial underwriting
B)frim underwriting
C)sole underwriting
D)complete or fully underwriting

Question 23

Buy Back must expenses may be treated as_________________

A)deffered revenue expenses
B)revenue expenses
C)revenue or deffered revenue expenses
D)capital expenses

Question 24

On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________

A)debit to profit & loss a/c
B)debit to equity shareholders a/c
C)credit to equity shareholders a/c
D)debit to realisation

Question 25

The existing 1,000 shares of Rs. 100 each are altered to 10,000 shares of Rs.10 each. This is known as__________________

A)sub-division
B)surrender
C)conversion in stock
D)consolidation