Deck 10: Accounting and Corporate Finance

Question 1

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

A)exclude opening cash & bank balance
B)exclude opening cash & bank balance.
C)includes opening cash & bank balance
D)exclude both opening & closing cash & bank balance

Answer 1

exclude opening cash & bank balance

Question 2

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

A)sole underwriting
B)firm underwriting
C)complete underwriting
D)partial underwriting

Answer 2

partial underwriting

Question 3

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

A)capital reserve a/c
B)general reserve a/c
C)capital redemption reserve a/c
D)securities premium a/c

Answer 3

capital reserve a/c

Question 4

'Pooling of interest' is a method of_____________________

A)charging depreciation
B)account of absorption
C)calculation of purchase consideration
D)accounting of amalgamtion

Question 5

Fictitious Assets are to be transferred to ___________________

A)internal reconstruction
B)share capital
C)securities premium
D)capital reserve

Question 6

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

A)preferential shareholders
B)legal charges, liquidators remuneration & expenses
C)unsecured creditors
D)preferential creditors

Question 7

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

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

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 _____

A)balance sheet
B)settlement
C)transaction
D)profit & loss a/c

Question 9

A feature which is common in all cases or merger__________________-

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

Question 10

Accounts of LLP are to be audited by _____________

A)cost accountant
B)master of commerce
C)chartered accountant
D)company secretary

Question 11

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

A)the company in general meeting
B)the registrar of companies
C)the central government
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.90
B)rs.95
C)rs.100
D)rs.105

Question 13

Conversion of currency is covered in AS______

A)11
B)9
C)14
D)13

Question 14

Accounting for Absorption is governed by______________

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

Question 15

Certificate of incorporation of LLP is issued by_______________

A)registrar of co-operative societies
B)registrar of companies
C)registrar of universities
D)registrar of firms

Question 16

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

A)over-riding preferential creditors
B)preferential creditors
C)unsecured creditors
D)secured 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.80
C)rs.90
D)rs.100

Question 18

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

A)on the date of balance sheet
B)on the date of subsequent
C)on the date of sale goods
D)on the date of first recovery

Question 19

According to AS 14, Transferor company means the company__________

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

Question 20

LLP can be dissolved by the order of____________

A)sessions court
B)district court
C)nclt
D)high court

Question 21

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

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

Question 22

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

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

Question 23

The depreciation of Fixed Assets is converted at rate________________

A)date of purchase
B)balance sheet
C)average during year
D)on the date of balance sheet

Question 24

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

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

Question 25

A Limited Liability Partnership has ________

A)no perpetual succession
B)perpetual succession
C)no specific period
D)specified period of life