1031. The profit on re-issuing forfeited shares is transferred to:

A. Capital reserve *
B. Capital redemption reserve
C. General reserve
D. Revaluation reserve

1032. The difference between the purchase price and net assets is:

A. Goodwill *
B. Capital reserve
C. Preliminary expense
D. Revenue reserve

1033. In the balance sheet of a company, the item goodwill, patents and trademarks are shown under the heading :

A. Current assets
B. Loans and advances
C. Fixed assets *
D. Investments

1034. A preliminary expense is a :

A. Current assets
B. Fictitious asset *
C. Current liability
D. Non-Current liability

1035. Divisible profits do not include :

A. Reserve fund
B. Profit on revaluation of assets *
C. Post-incorporation profits
D. None of the above

1036. The following information should be included on the:

A. Resources side of a monetary record *
B. Liabilities side of a monetary record
C. Charge side of a benefit and misfortune account
D. Credit side of a benefit and misfortune account

1037. Dividends are usually paid on the :

A. Called up capital
B. Paid up capital *
C. Subscribed capital
D. Nominal capital

1038. Which of the following is not related to how goodwill is valued?

A. Earning capacity method *
B. Super profits method
C. Average profits method
D. Net assets method

1039. When two or more companies dissolve to form a new company , the process is known as :

A. Amalgamation *
B. Absorption
C. Reconstruction
D. Combination

1040. Absorption is said to take place when :

A. A company is created to take over another company
B. At least two organizations are broken up to form a couple of organizations
C. Two or more organizations dissolve to be taken over by a company that already exists *
D. Two companies decide to virtual integrate their operations