Q. ………………………………………………..method the amount of depreciation expenses remains same throughout the useful life of a fixed assets
✅ Correct Answer: (A)
Straight line method
Corporate Accounting MCQs and Notes
Q. The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co.
✅ Correct Answer: (B)
Preference share holders
Q. Net Assets minus Capital Reserve is………………………
✅ Correct Answer: (A)
Purchase consideration
Q. While calculating purchase consideration ............... values of assets is to be considered.
✅ Correct Answer: (C)
Net
Q. In case of .............., one existing company takes over the business of another company and no new company is formed
✅ Correct Answer: (C)
Absorption
Q. When one of the existing companies take over business of another company or companies, it is known as…………………………………
✅ Correct Answer: (C)
Absorption
Q. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as…………………………
✅ Correct Answer: (B)
Amalgamation
Q. If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt .............. accounting policies.
✅ Correct Answer: (A)
Same
Q. Hitesh Ltd.’s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then...........
✅ Correct Answer: (A)
Goodwill Rs. 8,777
Q. Which of the following statement is correct?
✅ Correct Answer: (C)
Goodwill = Net Assets – Purchase price