{"id":17166,"date":"2022-04-01T10:32:44","date_gmt":"2022-04-01T05:02:44","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=17166"},"modified":"2026-02-09T21:12:08","modified_gmt":"2026-02-09T15:42:08","slug":"liquidation-of-companies-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/liquidation-of-companies-mcq\/","title":{"rendered":"Liquidation of Companies MCQ&#8217;s | Financial Accounting (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><strong><strong><strong>Liquidation of Companies MCQ<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/financial-accounting-mcqs\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/financial-accounting-mcqs\/\">MCQs on other topics of Financial Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. A company can be liquidated in any of following ways under the Companies Act, 2013 after 1-4-2017<br><\/strong>(a) Compulsory winding-up by the Tribunal<br>(b) Voluntary winding-up by the Members or Creditors<br>(c) Winding-up under the supervision of the Court<br>(d) All of the above<\/p>\n\n\n\n<p><strong>2. List H shows Account.<br><\/strong>(a) Deficiency or Surplus <br>(b) Preferential Creditors<br>(c) Fixed Assets Account <br>(d) None of the above<\/p>\n\n\n\n<p><strong>3. When a company is wound-up, all persons who ceased to be shareholders within a year before the winding-up are placed in the<br><\/strong>(a) &#8216;A&#8217; List of Contributories <br>(b) &#8216;B&#8217; List of Contributories<br>(c) &#8216;C&#8217; List of Contributories <br>(d) &#8216;D&#8217; List of Contributories<\/p>\n\n\n\n<p><strong>4. If default is made in delivering the annual return to the Registrar, the company is likely to face<br><\/strong>(a) compulsory winding up by the tribunal<br>(b) voluntary winding up by members<br>(c) voluntarily winding up by creditors<br>(d) none of the above<\/p>\n\n\n\n<p><strong>5. Following is treated as over-riding preferential creditor<br><\/strong>(a) Retirement benefits of employees <br>(b) Retirement benefits to workers<br>(c) Salary due to employees exceeding&nbsp;Rs&nbsp;20,000<br>(d) Remuneration to investigator<\/p>\n\n\n\n<p><strong>6. Remuneration to investigator upon investigation of the affairs of company is treated as<br><\/strong>(a) Secured creditor <br>(b) Over-riding preferential creditor<br>(c) Preferential creditor <br>(d) Unsecured creditor<\/p>\n\n\n\n<p><strong>7. Amount of Govt. dues that arose within 12 months before the date of winding up is treated as<br><\/strong>(a) Secured creditor <br>(b) Over-riding preferential creditor<br>(c) Preferential creditor <br>(d) Unsecured creditor<\/p>\n\n\n\n<p><strong>8. Amount of Retirement benefits of employees exceeding&nbsp;Rs 20,000 per employee is treated as<br><\/strong>(a) Secured creditor <br>(b) Over-riding preferential creditor<br>(c) Preferential creditor <br>(d) Unsecured creditor<\/p>\n\n\n\n<p><strong>9. Preference dividend in arrears on the date of winding up is<br><\/strong>(a) treated as Secured creditor <br>(b) treated as Over-riding preferential creditor<br>(c) treated as Preferential creditor <br>(d) added to Preference Share Capital<\/p>\n\n\n\n<p><strong>10. Amount of calls in advance is treated as<br><\/strong>(a) Secured creditor <br>(b) Asset not specifically pledged<br>(c) Preferential creditor <br>(d) Unsecured creditor<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)Compulsory winding-up by the Tribunal  2)Deficiency or Surplus  3)&#8217;B&#8217; List of Contributories  4)compulsory winding up by the tribunal<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 5)Retirement benefits to workers  6)Preferential creditor  7)Preferential creditor  8)Preferential creditor  9)added to Preference Share Capital  10)Unsecured creditor<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ-1024x576.webp\" alt=\"Liquidation of Companies MCQ\" class=\"wp-image-17208 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ-640x360.webp 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Liquidation-of-Companies-MCQ.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Liquidation of Companies MCQ<\/figcaption><\/figure>\n\n\n\n<p><strong>11. Interest on debentures and unsecured loan is payable upto the date of actual payment<br><\/strong>(a) if the company is solvent<br>(b) if the company is insolvent<br>(c) whether the company is solvent or insolvent<br>(d) none of the above<\/p>\n\n\n\n<p><strong>12. Accrued holiday remuneration becoming payable to any workman is treated as<br><\/strong>(a) Secured creditor <br>(b) Over-riding preferential creditor<br>(c) Preferential creditor <br>(d) Unsecured creditor<\/p>\n\n\n\n<p><strong>13. Liability for compensation under Workmen\u2019s Compensation Act is treated as<br><\/strong>(a) Secured creditor <br>(b) Over-riding preferential creditor<br>(c) Preferential creditor <br>(d) Unsecured creditor<\/p>\n\n\n\n<p><strong>14. If the remuneration to liquidator is payable as a percentage of collection<br><\/strong>(a) include opening cash and bank balance <br>(b) exclude closing cash and bank balance<br>(c) exclude opening cash and bank balance<br>(d) exclude both opening and closing cash and bank balance<\/p>\n\n\n\n<p><strong>15. If the remuneration to liquidator is payable on distribution,<br><\/strong>(a) exclude distribution to preferential and unsecured creditors and contributories<br>(b) include distribution to preferential and unsecured creditors but exclude distribution to contributories<br>(c) exclude distribution to preferential creditors but include distribution to unsecured creditorsand contributories<br>(d) include distribution to preferential and unsecured creditors and contributories<\/p>\n\n\n\n<p><strong>16.All contributions payable during the 12 months next under the&nbsp;Employees State Insurance&nbsp;Act, 1948<br><\/strong>(a) are treated as overriding preferential creditors<br>(b) are treated as preferential creditors unless the company is being wound up voluntarily for the purpose of reconstruction<br>(c) are treated as unsecured creditors<br>(d) are treated as preferential creditors unless the company is being wound up compulsorily bythe Court<\/p>\n\n\n\n<p><strong>17. A contributory is a<br><\/strong>(a) Unsecured creditor <br>(b) Preferential creditor<br>(c) Shareholder <br>(d) Debentureholder<\/p>\n\n\n\n<p><strong>18. List &#8216;A&#8217; in statement of affairs gives the list of<br><\/strong>(a) Assets specifically pledged <br>(b) Assets not specifically pledged<br>(c) Preferential creditors <br>(d) Unsecured creditors<\/p>\n\n\n\n<p><strong>19. List &#8216;E&#8217; in statement of affairs gives the list of<br><\/strong>(a) Preferential creditors <br>(b) Debentureholders<br>(c) Unsecured creditors <br>(d) Secured creditors<\/p>\n\n\n\n<p><strong>20. Secured creditors are shown in the statement of affairs under :<br><\/strong>(a) List A <br>(b) List B<br>(c) List C <br>(d) List D<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">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<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 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<\/mark> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. Preferential creditors are shown in the statement of affairs under :<br><\/strong>(a) List D <br>(b) List B<br>(c) List C <br>(d) List A<\/p>\n\n\n\n<p><strong>22. The proceeds of assets not specifically pledged and the surplus of the assets specifically pledged is first available for :<br><\/strong>(a) Preferential creditors<br>(b) Unsecured creditors<br>(c) Legal charges, liquidator&#8217;s remuneration and liquidation expenses<br>(d) Preference shareholders<\/p>\n\n\n\n<p><strong>23. Any sum due to an employee out of provident fund is an example of :<br><\/strong>(a) Unsecured creditor <br>(b) Preferential creditor<br>(c) Secured creditor <br>(d) Partly secured creditor<\/p>\n\n\n\n<p><strong>24. Bills were discounted to the extent of&nbsp; Rs&nbsp;10,000 of which bills of Rs&nbsp;4,000 are likely to be dishonoured. Hence, the liability to rank in respect of these bills will be<br><\/strong>(a)&nbsp;Rs&nbsp;10,000 <br>(b)&nbsp;Rs&nbsp;4,000<br>(c)&nbsp;Rs&nbsp;6,000 <br>(d)&nbsp;Rs&nbsp;14,000<\/p>\n\n\n\n<p><strong>25. When the sale proceeds of pledged security is not sufficient to pay off secured creditors fully, the balance due to them should be added to<br><\/strong>(a) Unsecured creditors <br>(b) Preferential creditors<br>(c) Equity share capital <br>(d) Preference share capital<\/p>\n\n\n\n<p><strong>26. When the liquidated company has adequate cash to pay off all liabilities, the interest on liabilities should be paid :<br><\/strong>(a) upto date of commencement of insolvency proceedings<br>(b) upto the date of actual payment of liabilities<br>(c) upto the date of payment to shareholders<br>(d) none of these<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21)List C  22)Legal charges, liquidator&#8217;s remuneration and liquidation expenses  23)Preferential creditor  24)Rs&nbsp;4,000<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 25)Unsecured creditors  26)upto the date of actual payment of liabilities<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/youtu.be\/ds0KRiiA5-E\" data-type=\"link\" data-id=\"https:\/\/youtu.be\/ds0KRiiA5-E\" target=\"_blank\" rel=\"noopener\">Video<\/a> lectures on Liquidation of Companies MCQ&#8217;s.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":17208,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[4773],"class_list":["post-17166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-liquidation-of-companies-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=17166"}],"version-history":[{"count":6,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17166\/revisions"}],"predecessor-version":[{"id":41929,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17166\/revisions\/41929"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/17208"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=17166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=17166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=17166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}