ACC311
1. 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
2. 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
3. One of these is not a type of partner.
General Partners
Limited Partner
Nominal partner
utmost good faith
4. 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
5. 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
6. The maximum number that can form partnership for professional is …
Two
Twenty
No maximum
fifty
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 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
9. A new business which acquires two or more existing businesses, which are then liquidated is called….
Absorption
Amalgamation
business combination
Reorganization
10. The purpose of accounting information excludes one of the followig
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
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