Commerce MCQ Multiple Choice Questions Answers

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

Correct Answer is: Directly to Balance sheet

Q: 3. Both of the old companies will not exist in

Correct Answer is: External reconstruction

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

Correct Answer is: Capital Reserve R

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

Correct Answer is: none of these

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

Correct Answer is: Consideration method

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

Correct Answer is: None of the above

Q: 11. 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 is: Weighted method

Q: 12. In amalgamation of two companies

Correct Answer is: None of the above

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

Correct Answer is: None of the Above

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

Correct Answer is: Articles of Association

Commerce Multiple Choice Questions (MCQs) are essential for students and exam aspirants to test their knowledge and understanding of key business concepts. Practice these MCQs to enhance your preparation and confidence.

About Commerce MCQ Questions

Commerce MCQs cover a wide range of topics including accounting, finance, economics, and business management. These questions are designed to test your understanding of fundamental concepts, practical applications, and current business practices. By practicing these MCQs, you can gain a deeper insight into the subject and improve your problem-solving skills.

Why Practice Commerce Objective Questions?

Practicing Commerce objective questions offers numerous benefits. It helps you prepare for school and college exams by reinforcing your knowledge and identifying areas that need improvement. For competitive exam aspirants, these MCQs are invaluable for enhancing your speed and accuracy. Additionally, candidates preparing for interviews can use these questions to brush up on their concepts and present themselves confidently.

Who Should Use These MCQs?

Commerce MCQ Questions for Practice

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

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

Profit and loss account
Trading account
Trading account Profit and Loss account
Directly to Balance sheet

3. Both of the old companies will not exist in

Internal reconstruction
Absorption
External reconstruction
Amalgamation

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

Goodwill Rs. 8,777
Capital Reserve Rs. 8,777
Goodwill Rs. 15,913
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

2 year
3 years
6 years
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.

Form of Merger
Form of purchase
Net assets method
Consideration method

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

Amalgamation
Takeover
Absorption
None of the above

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

Cash
Debenture
Pref. share
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

Fair Value
Face Value
Intrinsic Value
Yield Value

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

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

Lifo method
Fifo method
Weighted method
Uniform

12. In amalgamation of two companies

Both companies lose their existence
Both companies continue
Any one company continues
None of the above

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

Amalgamation
Absorption
Reconstruction
None of the Above

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

Memorandum of Association
Table A
Certificate of commencement of business
Articles of Association

15. Maximum number of members in public limited company is

10
20
50
unlimited

16. Minimum number of members in case of public company is

17. Net Assets minus Capital Reserve is

Goodwill
Total assets
Purchase consideration
None of these

18. Premium on issue of shares can be used for

distribution of dividend
writing of capital losses
transferring to general reserve
paying fees to directors

19. Premium received on issue of shares cannot be utilised for

for the issue of bonus shares
for writing of preliminary expenses
for providing premium payable on redemption
for distribution of dividend

20. Premium received on issue of shares is shown on

asset side of the balance sheet
liability side of the balance sheet
credit side of the P&L a/c.
debit side of the P & L a/c

21. Section .............of companies act 1956 deals with the scheme of stock invest

69 to 70
69 to 71
69 to 72
69 to 73

22. Share allotment account is a

personal account
Real account
Nominal account
Impersonal account

23. Shares received from the new company are recorded at

Face value
Average price
Market value
None of the above

24. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet.

Reserve and Surplus
Fixed Assets
Investments
Miscellaneous expenditure

25. The minimum share Application money is

5% of the face value of shares
10% of the issue price of shares
Re. 1 per share
15% of the face value of shares

26. The original amount of preference share capital should be transferred to ...................account in the time of amalgamation in the books of vendor co.

Preference shareholders Account
Capital Reserve Account
Equity share capital Account
Equity share capital Account

27. The shares received from the new company is recorded at

Face value
Market value
Average price
None of these

28. Trade Payables are recorded in .............

Asset side of B/S
Liability side of B/S
P & L a/c
None ofthe above

29. When company purchases the business of another company ................comes into existence.

Amalgamation
Absorption
External Reconstruction
Internal Reconstruction

30. When liquidation expenses is paid and borne by seller company then it is debited to

Bank A/c
Goodwill A/c
Realisation A/c
Capital Reserve A/c

Commerce MCQ Multiple Choice Questions Answers | Quiz for Practice

About Commerce MCQ Questions

Why Practice Commerce Objective Questions?

Who Should Use These MCQs?

Commerce MCQ Questions for Practice

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

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

3. Both of the old companies will not exist in

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

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

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

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

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

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

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

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

12. In amalgamation of two companies

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

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

15. Maximum number of members in public limited company is

16. Minimum number of members in case of public company is

17. Net Assets minus Capital Reserve is

18. Premium on issue of shares can be used for

19. Premium received on issue of shares cannot be utilised for

20. Premium received on issue of shares is shown on

21. Section .............of companies act 1956 deals with the scheme of stock invest

22. Share allotment account is a

23. Shares received from the new company are recorded at

24. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet.

25. The minimum share Application money is

26. The original amount of preference share capital should be transferred to ...................account in the time of amalgamation in the books of vendor co.

27. The shares received from the new company is recorded at

28. Trade Payables are recorded in .............

29. When company purchases the business of another company ................comes into existence.

30. When liquidation expenses is paid and borne by seller company then it is debited to

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Commerce MCQ Multiple Choice Questions Answers | Quiz for Practice

About Commerce MCQ Questions

Why Practice Commerce Objective Questions?

Who Should Use These MCQs?

Commerce MCQ Questions for Practice

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

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

3. Both of the old companies will not exist in

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

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

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

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

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

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

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

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

12. In amalgamation of two companies

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

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

15. Maximum number of members in public limited company is

16. Minimum number of members in case of public company is

17. Net Assets minus Capital Reserve is

18. Premium on issue of shares can be used for

19. Premium received on issue of shares cannot be utilised for

20. Premium received on issue of shares is shown on

21. Section .............of companies act 1956 deals with the scheme of stock invest

22. Share allotment account is a

23. Shares received from the new company are recorded at

24. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet.

25. The minimum share Application money is

26. The original amount of preference share capital should be transferred to ...................account in the time of amalgamation in the books of vendor co.

27. The shares received from the new company is recorded at

28. Trade Payables are recorded in .............

29. When company purchases the business of another company ................comes into existence.

30. When liquidation expenses is paid and borne by seller company then it is debited to

Your Score

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