The sale and distribution of the assets of a business on its termination is Group of answer choices a takeover. a breach of fiduciary duty. liquidation. dissolution.
Q: Differentiate between voluntary and involuntary liquidation of a company and outline the…
A: Liquidation is the process of getting a business shut down and distributing its assets to claimants.…
Q: The statement of realization and liquidation reports the actual results of a liquidation whereas a…
A: The answer is True Refer step 2 for explanation
Q: Which of the following statements about a business combination is valid?
A: Answer: b.The acquirer should recognize the acquiree’s contingent liabilities if certain conditions…
Q: naked debenture
A: Debentures which are not secured by specific assets is known as Naked debentures.
Q: It is a circumstance in which the liquidation value of an industry is examined for purposes that are…
A: Any company's liquidation is the process of winding up the business because it has lost money due to…
Q: It is legal and ethical to use one method of deprecia method on the company's financial statements.
A: True, it is legal and ethical to use one method of depreciation for taxes and another method on the…
Q: Which of the following is a distinguishing characteristic of a nonbusiness organization? Select…
A: The Non business Organizations are the organizations that are formed and operated for the benefits…
Q: Which of the following is not considered in the determination of Total Assets after business…
A: In business combination , following are considered for determination of total assets : 1. Fair…
Q: Which one of the following statements correctly describes a characteristic of an entity purchase…
A: In this question we will explain that which is the correct option or a suitable characteristic of…
Q: How shall an acquirer in a business combination account for the changes in fair value contingent…
A: Business combination is a form of arrangement or agreement between two or more than two entities in…
Q: Which of the following statements about a business combination is valid? The acquirer should…
A: The acquirer should recognise the net assets acquired and the fair value of consideration…
Q: Are poison-pill defenses ethical? If a potential acquirer buys company stock legally, thereby…
A: The word poison pill refers to a defensive technique used by a target firm to prevent or deter an…
Q: Ethical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock…
A: While taking business decisions, business ethics play an important role. Business ethics means right…
Q: Which of the following is an example of protective rights? Rights to appoint or remove another…
A: Protective rights refers to the rights which are designed to protect the parties interest that holds…
Q: Why should a company monitor the reporting of goodwill prior to the filing of a bankruptcy petition?
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: A bidders disclosure statement under the Williams Amendment must be submitted when the bidder:…
A: William Amendment is there to protect the shareholders who might become target of hostile takeover.…
Q: text __________________is the residual interest in the assets of the entity after deducting all of…
A: Assets of the business composed of two components, one is related to liabilities part and other is…
Q: When does gain recognition accompany a business combination?a. When a bargain purchase occurs.b. In…
A: Gains: Gain can be defined as the revenue exceeding the expenses, this increases the equity.
Q: Which of the following accounting treatments for costs related to business combination is incorrect?
A: Answer - The Pre incorporation Costs shall not be capitalised. If shall be debited to Profit and…
Q: Which of the following is not an application of the acquisition method?
A: Answer: d) Measuring the non-controlling interest at the NCI’s proportionate share in the acquirer’s…
Q: Which of the following is not an application of the acquisition method? a. Measuring the…
A: Option a is correct.
Q: Which of the following is true? B. The agent is expected to carry out an agency although its…
A: Agency is the contract entered between two parties namely agent and principal in which agent is…
Q: Which of the following statements is incorrect? Select the correct response: In practice, the…
A: Liquidation value can be obtained by the amount realised from the total non-cash assets reduced by…
Q: A company expected to go bankrupt in the near future is considered to be operating under the…
A: Three fundamental assumptions of accounting are: 1.Going concern assumption 2. Accrual 3.…
Q: Assume that a business is headed for certain bankruptcy and it is evident that its liabilities…
A: Generally Accepted Accounting Principles (GAAP) or US GAAP are the collection of accounting…
Q: Which of the following statements regarding the accounting for business combinations is false?…
A: Although goodwill is the difference between the consideration transferred by the acquirer to the…
Q: Which of the following accounting treatments for costs related to business combination is incorrect?…
A: The cost related to business corporation, also known as pre incorporation expenditure, are treated…
Q: If the reorganization value of a company emerging from bankruptcy is larger than the fair values…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: n of proceeds from liquidation? In general jow much do unsecured creditors receive from a liqu
A: Secured bondholders and other secured creditors are paid first because their money is guaranteed, or…
Q: Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of…
A: Management Buy-Out (MBO) involves the pooling of resources by the management team in order to…
Q: Derecognition is the removal of all or part of a recognised asset or liability from an entity’s…
A: If any amount is received for an asset which is Derecognized then it should be treated as liability.…
Q: How shall an acquirer in a business combination account for the changes in fair value contingent…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: What are the major types of divestitures? Whatmotivates firms to divest assets?
A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…
Q: Contraventions of the Corporations Act that are considered significant include: O a fraud by…
A: Under the Corporations Act, an auditor is obligated to report certain matters including certain…
Q: Which of the following is / are external indicator/s of impairment loss? Impact of legal environment…
A: The reduction or decline in the carrying worth of any asset due to its fair value can be referred to…
Q: What is the purpose of a statement of liquidation? What information does it convey to its readers?
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…
Q: A contingent liability assumed in a business combination: a. Is not accounted for by the acquirer…
A: Contingent liability: The contingent liability is not treated as a liability of the company on the…
Q: Which of the following is not a right of owners of common shares? Residual assets in liquidation…
A: A company has several sources from where it can raise funds. It can issue equity shares and the…
Q: Describe the difference between a right of first refusal, an option agreement and a buy-sell…
A: A right of first refusal gives an individual or corporation the contractual right to participate in…
Q: If a director allows a company to continue to trade indefinitely and the company is placed into…
A: In a partnership, two or more parties agree to operate and manage a business and share the profits…
Q: Transferring corporate assets to shareholders for less than fair market value is a form of Multiple…
A: Looting is the practice of obtaining or seizing items by force, usually during a military,…
Q: Can the members possibly stipulate that upon the return of assets, due to dissolution and other…
A: Return of assets is the amount that a company can generate through assets.
Q: Under the going concern assumption: * an entity is viewed as not likely to continue in operation for…
A: Under going concern assumption, it is assumed that busines will be continued for a foreseeable…
Q: Describe three circumstances under which a person who has ceased to be a liquidator is released from…
A: Liquidation of assets can be voluntary or compulsory. Voluntary liquidation may be conducted to…
Q: Dissolution and liquidation are different. S2: In the liquidation of a business the owners’ claims…
A: Dissolution and liquidation both used interchangeably many a times in normal circumstances which…
Q: A trustee for a company that is being liquidated voids a preference transfer. What has happened, and…
A:
Q: Choose the correct. When does gain recognition accompany a business combination?a. When a bargain…
A: Gains: Gain can be defined as the revenue exceeding the expenses, this increases the equity.
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- Differentiate between voluntary and involuntary liquidation of a company and outline the circumstances under which each may occur.In a liquidation proceeding, if the proceeds on the realization of an asset exceed the lien against that asset, the excess is assigned to*a. the holder of the lien.b. meet the claims of the unsecured creditors.c. the stockholders of the corporation.d. other lien holders whose assets will not realize a sufficient amount to cover their liens.Describe three circumstances under which a person who has ceased to be a liquidator is released from their obligations with respect to a voluntary liquidated company
- Which of the following statements about a business combination is valid? a. The acquirer should recognize the acquiree’s contingent assets if certain conditions are met. b. The acquirer should recognize the acquiree’s contingent liabilities if certain conditions are met. c. The acquirer should recognize the acquiree’s contingent assets regardless of any conditions to be met. d. The acquirer should never recognize the acquiree’s contingent liabilities even if certain conditions are met.Which of the following is not an expected function of a bankruptcy trustee?a. Filing a plan of reorganization.b. Recovering all property belonging to a company.c. Liquidating noncash assets.d. Distributing assets to the proper claimants.An arrangement for creditors to accept an amount less than the amount owed to them is referred to as a a. charge and discharge agreementb. composition agreementc. bankruptcy agreementd. chandler agreement
- If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party, a.The disallowed loss is lost forever. b.The disallowed loss may be used if there is a further loss on the subsequent sale. c.The unrelated party may claim the loss previously disallowed. d.An amended return may be filed to claim the loss previously disallowed. e.The disallowed loss may be used to offset gain on the subsequent sale.Under the going concern assumption: * an entity is viewed as not likely to O continue in operation for the foreseeable future. an entity's assets and liabilities are recorded at liquidation values. an entity is viewed as continuing in business for the foreseeable future. an entity is considered to be a separate legal entity from its owners.PROBLE other financial assets. associates and joint ventures. delivering cash or another financial asset. However, Entity A's not sufficient to justify offsetting because the rights and d. An intention to settle a financial asset and a financial 2 A contract that evidences a residual interest in the entity's assets after deducting all of its liabilities is classified as 4. Entity A issues an instrument that is re-purchasable by d. Liabilities arising from constructive obligations. Physical assets, such as inventories and PPE. and financial liability remain unaltered. Which of the following is within the scope of PAS 32? b. Contracts for the delivery or receipt of commodity and other non-financial items that can be settled net in cash or Financial assets in the form of investments in subsidiaries, 1. a. b. Co non-financial items that can be settled net in cash or Physical assets, such as inventories and PPE C. ssets after deducting all of its liabilities is classified as a. a financial…