ACC311 Tma Solutions
1. Purchase consideration in amalgamation and absorption of companies can take one of several forms:
—>> Bond
Payment of cash
Issue of shares
Issue of loan capital
2. The total amount which has not been called up on the issued share capital is called
Paid up capital
—>> Uncalled-up capital
Calls in arrears
Reserve Capital
3. A case where all shares offered for public subscription may not be taken up by the public is called
Oversubscription
Minimum Subscription
—>> Under-subscription
Allotment of Share
4. A branch located within the same country in which the head office of the business is located is called..
—>> Foreign Branch
Local Branch
Quasi-Branch
Dependent Branch
5. The maximum number that can form partnership for professional is ……
Two
Twenty
—>> No maximum
fifty
6. A new business which acquires two or more existing businesses, which are then liquidated is called….
Absorption
—>> Amalgamation
business combination
Reorganization
7. The account which is used to ascertain the gross profit of a branch is called
—>> Branch mark-up
Goods sent to branch account
Branch debtor account
Adjustment Account Method
8. The purpose of accounting information excludes one of the following
—>> To determine performance of an entity over time.
To evaluate management efficiency.
To assess the going concern status of an entity.
Financial statements are prepared to show true and fair view
9. One of these is not an advantage of departmental accounting.
It helps in monitoring the progress of each departments
The gross profit of each department can be ascertained.
Easy determination of profitable and unprofitable segments
—>> enables fraud perpetration
10. One of these is not a type of partner.
General Partners
Limited Partner
Nominal partner
—>> utmost good faith
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