accountancy commerce practice questions for ugc net kset exams

accounting -1

1 / 5

In case of .............., one existing company takes over the business of another company
and no new company is formed.
(A) Amalgamation

(B) Absorption
(C) Reconstruction

(D) None of the Above

a

b

c

d

2 / 5

If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance
will not be shown in the balance sheet.
(A) Form of Merger

(B) Form of purchase
(C) Net assets method

(D) Consideration method

a

b

c

d

3 / 5

If the two companies have different accounting policies in respect of the same item, then
they make necessary changes to adopt .............. accounting policies.
(A) Lifo method

(B) Fifo method
(C) Weighted method

(D) Uniform

a

b

c

d

4 / 5

When one of the existing companies take over business of another company or
companies, it is known as ...........
(A) Amalgamation

(B) Absorption
(C) Internal reconstruction

(D) External reconstruction

a

b

c

d

5 / 5

When two or more companies carrying on similar business decide to combine, a new
company is formed, it is known as ..................
(A) Amalgamation

(B) Absorption
(C) Internal reconstruction

(D) External reconstruction

a

b

c

d

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