Best No. 1 MCQ QUIZ on Conversion of Firm To Company: Test your knowledge on the conversion of partnership firms to companies with this interactive MCQ quiz. Perfect for commerce students and competitive exam aspirants!
MCQ QUIZ on Conversion of Firm To Company is Below
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Following are the MCQ on Conversion of Firm to Company. These are helpful to you for study.
“If you want the answers to the following questions, you will have to solve the above quiz.”
1. The conversion of a partnership firm means-
A) Sale of Firm to Company
B) Conversion
C) Purchase Consideration
D) None of the above
2. PC means-
A) Purchase Consideration
B) Pure Consideration
C) Purchase Consolidation
D) Purchase Construction
3)The amount paid by the purchasing company is-
A) Purchase Consideration
B) Pure Consideration
C) Purchase Consolidation
D) Purchase Custruction
4) PC will be paid in-
A) All of the below
B) Cash
C) Debentures
D) Shares
5) Net Asset Method & Net Payment Methods are the Methods of-
A) PC
B) Distribution of Shares
C) Depreciation
D) None of The above
6) PC Formula-
A) Asset Taken Over – Liabilities Taken Over
B) Cash – Shares
C) Asset Not Taken – Liabilities Taken
D) None of the above
7) Realisation Expenses are shown in which side of Realisation Account
A) Debit Side
B) Credit SIde
C) Both
D) None of the above
8) Realised Assets are shown in which side of Realisation Account
A) Debit Side
B) Credit SIde
C) Both
D) None of the above
9) Realised Liabilites are shown in which side of Realisation Account
A) Credit SIde
B) Debit Side
C) Both
D) None of the above
10) Shares are Distributed to
A) Partners
B) Company
C) Firm
D) None of the above
11) Profit & Loss on Realisation is transfer to-
A) Partners Capital A/c
B) Realisation A/c
c) Cash A/c
D) Shares A/c
12) Profit on Realisation is transfer to which side of Partners Capital Account
A) Credit Side
B) Debit Side
C) Left Side
D) None of The Above
13) Loss on Realisation is transfer to which side of Partners capital Account
A)Credit Side
B) Debit Side
C) Right Side
D) None of the above
14) Balancing figure in Partners Capital Account is transfer to –
A) Cash A/c
B) Debentures A/c
C) Realisation A/c
D) None of the above
15) Balancing figure in Debit side of Partners Capital Account is transfer to which side of Cash A/c
A) Credit Side
B) Debit Side
C) Both
D) None of the above
16) Purchasing Company Account in the books of Fims,entries are shown only regarding to
A) Purchase Consideration
B) Liabilities
C) Assets
D) None of the above
17) Limited Liability & Require larger Capital is a___of Firm
A)Need
B)Disadvantages
C) Drawbacks
D) None of the above
18)In a company form of business, what protects the personal assets of shareholders?
A) Limited liability
B) Partnership deed
C) Unlimited liability
D) Government guarantee
19) Purchase Consideration refers to the amount paid by the purchasing company to whom?
A) Target or selling firm
B) Shareholders of the acquiring company
C) Government
D) Employees
20) Which of the following is a method of calculating Purchase Consideration?
A) Net Asset Method
B) Current Ratio Method
C) Net Sales Method
D) Dividend Yield Method
📌 Conclusion: Test Your Concepts with Real-World Applications
Understanding how a firm is converted into a company is important to know today’s business and legal rules. This MCQ QUIZ on Conversion of Firm To Company helps you remember important topics like purchase consideration, accounting process, and legal steps in conversion.
✅ If you are studying for exams like CA Foundation, CS, B.Com, or other commerce exams, this quiz will help you understand better and build confidence.
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FAQ: MCQ Quiz on Conversion of Firm to Company
1. What is the purpose of this MCQ quiz?
This quiz helps you test your knowledge of the process, accounting treatment, and legal implications involved in converting a partnership firm into a company.
2. Who should take this quiz?
Students preparing for exams like CA Foundation, CS Executive, B.Com, M.Com, or anyone studying Business Law or Accounting should take this quiz
3. How many questions are in the quiz?
The quiz contains a set of 20 multiple choice questions covering the most important concepts about conversion of firms into companies
4. Do I need to register to take the quiz?
No registration is required unless your website uses a plugin that tracks scores. You can directly take the quiz from this page.
5.Can I retake the quiz?
Yes, you can retake the quiz as many times as you like to improve your score and understanding