McqMate
Chapters
| 1. |
Internal reconstruction is a slow and tedious process since it required the approval of : |
| A. | Court |
| B. | Shareholders |
| C. | Creditors |
| D. | All of the Above. |
| Answer» D. All of the Above. | |
| 2. |
If the preference shareholder agree to sacrifice the arrear off preference dividend, it is credited to: |
| A. | Capital Reduction A/C |
| B. | Preference Shareholders A/C |
| C. | Goodwill A/c |
| D. | Profit& Loss A/C |
| Answer» A. Capital Reduction A/C | |
| 3. |
After the implementation of the scheme of internal reconstruction , any surplus in capital reduction A/C is transferred to : |
| A. | Capital A/C |
| B. | Profit & Loss A/C |
| C. | Shareholders A/C |
| D. | Capital reserve A/C |
| Answer» D. Capital reserve A/C | |
| 4. |
……………………reconstruction refers to the reduction of capital to cancel any paid up capital. |
| A. | External |
| B. | Internal |
| C. | Amalagamation |
| D. | Absorption |
| Answer» B. Internal | |
| 5. |
Reduction of share capital is possible by the company, if it is authorized by its: |
| A. | Articles. |
| B. | Special resolution. |
| C. | Confirmation of the court. |
| D. | All of the Above. |
| Answer» D. All of the Above. | |
| 6. |
Converting share of smaller denomination into larger denominations is called: |
| A. | Sub-division |
| B. | Combination |
| C. | Consolidation |
| D. | Merger |
| Answer» C. Consolidation | |
| 7. |
Converting share of larger denomination into smaller denominations is called: |
| A. | Sub-division |
| B. | Combination |
| C. | Consolidation |
| D. | Merger |
| Answer» A. Sub-division | |
| 8. |
After the implementation of scheme of internal reconstruction, any amount left in the capital reduction A/C will be transfer to: |
| A. | Capital Reserve A/C |
| B. | Capital A/c |
| C. | Profit & Loss A/C |
| D. | Shareholders A/C |
| Answer» A. Capital Reserve A/C | |
| 9. |
The main purpose of internal reconstruction is to: |
| A. | Eliminate the accumulated losses from the books. |
| B. | Bring down the assets to their true values |
| C. | Both A&B above |
| D. | Only A |
| Answer» C. Both A&B above | |
| 10. |
A fair and equitable distribution of loss is the essence of a successful scheme of: |
| A. | External reconstruction. |
| B. | Merger |
| C. | Amalgamation |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
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