Commerce MCQ Questions and Answers for Practice

1. After getting minimum subscription of shares, the company has to allot shares with in ..........days

1. 90
2. 100
3. 110
4. 120

2. All direct & indirect expenses related to business are charged

1. Profit and loss account
2. Trading account
3. Trading account Profit and Loss account
4. Directly to Balance sheet

3. Both of the old companies will not exist in

1. Internal reconstruction
2. Absorption
3. External reconstruction
4. Amalgamation

4. Hitanshi Ltd.s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then...........

1. Goodwill Rs. 8,777
2. Capital Reserve Rs. 8,777
3. Goodwill Rs. 15,913
4. Capital Reserve R

5. Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan

1. 2 year
2. 3 years
3. 6 years
4. none of these

6. If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet.

1. Form of Merger
2. Form of purchase
3. Net assets method
4. Consideration method

7. If Company A purchases the majority shares of Company B, what combination would this be referred to?

1. Amalgamation
2. Takeover
3. Absorption
4. None of the above

8. If the intrinsic values of shares exchanged are not equal, the difference is paid in ...........

1. Cash
2. Debenture
3. Pref. share
4. Assets

9. If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............of the share is to be determined

1. Fair Value
2. Face Value
3. Intrinsic Value
4. Yield Value

10. If the minimum subscription is not received by the company, then the refund of application money should be made within ...........days

1. 7
2. 9
3. 10
4. 22

11. If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt.............. Accounting policies.

1. Lifo method
2. Fifo method
3. Weighted method
4. Uniform

12. In amalgamation of two companies

1. Both companies lose their existence
2. Both companies continue
3. Any one company continues
4. None of the above

13. In case of ..................one existing company takes over the business of another company and no new company is formed.

1. Amalgamation
2. Absorption
3. Reconstruction
4. None of the Above

14. In case of public limited company, after getting the ..................the company can start the business

1. Memorandum of Association
2. Table A
3. Certificate of commencement of business
4. Articles of Association

15. Maximum number of members in public limited company is

1. 10
2. 20
3. 50
4. unlimited