Which one of the following statements is not true?
A. When there is one liquidation and one formation it is known as external construction
B. Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger
C. Under the pooling of interest method, the transferee company incorporates the assets and liabilities of the transferor company at book value
D. The vendor company transfers preliminary expenses (at the time of absorption) to equity shareholder's account
Answer: Option B
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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