1. When the merger involves liquidation of one existing sick company and formation of one new company, it is called
a) internal reconstruction
b) absorption
c) external reconstruction
d) amalgamation
2. A feature which is common in all cases of merger viz. absorption, amalgamation and external reconstruction is
a) purchase of one company by another company
b) liquidation of at least two companies
c) formation of at least one new company
d) liquidation at least one existing company and formation of at least one new company
3. Under the Companies Act, 1956
a) ‘absorption’ includes ‘’amalgamation”
b) ‘amalgamation’ includes ‘absorption’
c) ‘amalgamation’ excludes ‘absorption’
d) ‘internal reconstruction’ includes ‘’external reconstruction”
4. Accounting for amalgamation is governed by
a) Accounting Standard 1
b) Accounting Standard 13
c) Accounting Standard 14
d) Accounting Standard 11
5. Accounting for absorption is governed by
a) Accounting Standard 1
b) Accounting Standard 13
c) Accounting Standard 11
d) Accounting Standard 14
6. Accounting for amalgamation by way of purchase is governed by
a) Accounting Standard 1
b) Accounting Standard 13
c) Accounting Standard 14
d) None of the above
7. Accounting for amalgamation by way of merger is governed by
a) Accounting Standard 1
b) Accounting Standard 14
c) Accounting Standard 13
d) None of the above
8. According to AS 14, Transferor Company means the Company
a) which is amalgamated into another Company
b) into which a Company is amalgamated
c) which is newly formed
d) none of the above
9. According to AS 14, Transferee Company means the Company
a) which is amalgamated into another Company
b) into which a Company is amalgamated
c) which is liquidated
d) none of the above
10. According to AS 14, Amalgamations fall into two categories
a) amalgamation and absorption
b) merger and purchase
c) amalgamation and reconstruction
d) external reconstruction and internal reconstruction