Liquidation of Companies MCQ’s | Financial Accounting (Free Resource)

11. Interest on debentures and unsecured loan is payable upto the date of actual payment
(a) if the company is solvent
(b) if the company is insolvent
(c) whether the company is solvent or insolvent
(d) none of the above

12. Accrued holiday remuneration becoming payable to any workman is treated as
(a) Secured creditor
(b) Over-riding preferential creditor
(c) Preferential creditor
(d) Unsecured creditor

13. Liability for compensation under Workmen’s Compensation Act is treated as
(a) Secured creditor
(b) Over-riding preferential creditor
(c) Preferential creditor
(d) Unsecured creditor

14. If the remuneration to liquidator is payable as a percentage of collection
(a) include opening cash and bank balance
(b) exclude closing cash and bank balance
(c) exclude opening cash and bank balance
(d) exclude both opening and closing cash and bank balance

15. If the remuneration to liquidator is payable on distribution,
(a) exclude distribution to preferential and unsecured creditors and contributories
(b) include distribution to preferential and unsecured creditors but exclude distribution to contributories
(c) exclude distribution to preferential creditors but include distribution to unsecured creditorsand contributories
(d) include distribution to preferential and unsecured creditors and contributories

16.All contributions payable during the 12 months next under the Employees State Insurance Act, 1948
(a) are treated as overriding preferential creditors
(b) are treated as preferential creditors unless the company is being wound up voluntarily for the purpose of reconstruction
(c) are treated as unsecured creditors
(d) are treated as preferential creditors unless the company is being wound up compulsorily bythe Court

17. A contributory is a
(a) Unsecured creditor
(b) Preferential creditor
(c) Shareholder
(d) Debentureholder

18. List ‘A’ in statement of affairs gives the list of
(a) Assets specifically pledged
(b) Assets not specifically pledged
(c) Preferential creditors
(d) Unsecured creditors

19. List ‘E’ in statement of affairs gives the list of
(a) Preferential creditors
(b) Debentureholders
(c) Unsecured creditors
(d) Secured creditors

20. Secured creditors are shown in the statement of affairs under :
(a) List A
(b) List B
(c) List C
(d) List D

Answers: 11)if the company is solvent 12)Over-riding preferential creditor 13)Over-riding preferential creditor 14)exclude opening cash and bank balance 15)include distribution to preferential and unsecured creditors and contributories 16)are treated as preferential creditors unless the company is being wound up voluntarily for thepurpose of reconstruction 17)Shareholder 18)Assets not specifically pledged 19)Unsecured creditors 20)List B