Exam 33: Insolvency and Liquidation

Which of the following statements is correct? I. Debts may be admitted by the liquidator without formal proof. II. All creditors' claims are admissible to proof against the company in liquidation. III. The size of any debts is calculated for the purpose of the winding up as at the day on which the winding up is taken to have begun.

Which of the following provides the basis for a voluntary winding up of a company?

The report as to affairs (Form 507) is required to be prepared by the:

After receiving the statement of affairs from the directors, the liquidator must submit a preliminary report to ASIC within:

The administrator of a company under administration has power to do which of the following? I. appoint a person as director. II. remove from office a director of the company. III. execute a document, bring or defend proceedings, or do anything else, in the company's name and on its behalf.

The details below were extracted from the accounting records of Capricorn Ltd (a company in the process of liquidation). 100000 \ 1 preference shares fully paid \ 100,000 200000\ 1 ordinary shares paid to 50 cents 100,000 \2 00,000 Cash available (after payment of all creditors) \2 0,000 Assume that the constitution of Capricorn Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency. For ordinary shareholders, the amount of the actual refund or call is:

In relation to the order of priority of payment of debts upon liquidation, which of the following statements is correct?

An administrator may be appointed by:

The details below were extracted from the accounting records of Capricorn Ltd (a company in the process of liquidation). 100000 \ 1 preference shares fully paid \ 100,000 200000\ 1 ordinary shares paid to 50 cents 100,000 \2 00,000 Cash available (after payment of all creditors) \2 0,000 Assume that the constitution of Capricorn Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency. What will be the deficiency or surplus apportioned to ordinary shareholders?

Which of the following is an example of an ordinary unsecured creditor?

At the commencement of a members' voluntary winding up, a written declaration must be provided by directors stating that all debts will be able to be paid in full within a period of no more than:

The receiver's role normally includes the following except for:

Which of the following is entitled to make an application to the court for an insolvent company to be wound up?

The main purpose of the liquidation account is to:

The journal entry to record the distribution of cash to shareholders includes which of the following?

The details below were extracted from the accounting records of Capricorn Ltd (a company in the process of liquidation). 100000 \ 1 preference shares fully paid \ 100,000 200000\ 1 ordinary shares paid to 50 cents 100,000 \2 00,000 Cash available (after payment of all creditors) \2 0,000 Assume that the constitution of Capricorn Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency. What will be the deficiency or surplus apportioned to preference shareholders?

refers to when a company is unable to pay its debts as they become due and payable.

Which of the following statements is incorrect?

A declaration of solvency is required to be signed by the directors of the company in order for:

Under a court ordered winding up, a liquidator has the power to: I. dispose of the property of the company. II. use any legal methods to obtain money from a debtor. III. commence legal proceedings on behalf of the company. IV. pay the company's shareholders before paying the creditors.