Corporate Accounting

What is liquidation of a company?

• voluntory winding up

• compulsory winding up

• both 1st and 2nd

• none

Statutory Reserve is which schedule?

• 2

• 1

• 14

• 12

1) Two companies A Ltd and B Ltd go into liquidation to form a new company S Ltd. It is

• Amalgamation

• Absorption

• External Reconstruction

• None of the above

_____________ is the maximum amount of capital that can be issued by the company

Shareholders are not liable to corporate obligations in excess of their legal capital?

• True

• False

A person of minor age can be a shareholder but can never be an incorporator in a corporation?

• True

• False

Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to:

• General reserve

• Amalgamation adjustment account

• Goodwill or capital reserve

• None of the above

. Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to:

• General reserve

• Amalgamation adjustment account

• Goodwill or capital reserve

• None of the above

X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of:

(a)

(b)

(c)

• Absorption

• External reconstruction

• Amalgamation

. Accumulated profits include:

(a)

(b)

(c)

• Provision for doubtful debts

• Superannuation fund

• Workmen's compensation fund