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Commerce · Q1706

Accounting

Graduate and Post Graduate · Commerce · question 1706

Q1706

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
Answer
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

Solution

Answer: Option B
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