MCQ for CA Intermediate Adv. Accounts - Chapter 6 - INTERNAL RECONSTRUCTION
Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 5 - ADVANCED ACCOUNTING - Chapter 6: INTERNAL RECONSTRUCTION - For Practice relevant for May/November 23 Examinations
Q1. When the object of reconstruction is usually to re-organise capital or to compound with creditors or to effect economies then such type of reconstruction is called
- Internal reconstruction with liquidation
- Internal reconstruction without liquidation of the company
- External reconstruction
Answer: 2
Q2. The accumulated losses under scheme of internal reconstruction are written off against
- Capital Reduction account
- Share Capital account
- Shareholder’s account
Answer: 1
Q3. Reconstruction is a process by which affairs of a company are reorganized by
- Revaluation of assets and Reassessment of liabilities
- Writing off the losses already suffered by reducing the paid up value of shares and/or varying the rights attached to different classes of shares.
- Both (a) and (b).
Answer: 3
Q4. For reduction of the share capital, the permission has to be sought from
- Court.
- Controller.
- State government.
Answer: 1
Q4. In case of internal reconstruction
- Only one company is liquidated
- Two or more companies are liquidated
- No company is liquidated
Answer: 3
Q5. A process of reconstruction, which is carried out without liquidating the company and forming a new one is called
- Internal reconstruction.
- External reconstruction.
- Amalgamation.
Answer: 1
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