Which of the following statement is correct about the statement of affairs?
2. Which of the following statement is correct about the statement of affairs?
I. Net free assets are the excess of liquidation value of assets pledged to fully secured creditors over the amount of fully secured liabilities plus free assets less unsecured liabilities with priority.
II. The estimated deficiency to unsecured creditors is total unsecured liabilities less total Net free assets
III.Total unsecured liabilities includes unsecured liability with priority
[A] I only
[B] I and II only
[C] II and III only
[D] I, II and III
3. S1: For a joint venture, rights pertains to the rights and obligations associated with individual assets and liabilities, whereas with a joint the right operation, the rights and obligations pertains to the net assets. S2: Where the joint operators have designed the joint arrangement so that its activities primarily aim to provide the parties with an output it will be classified as joint venture.
[A]Both statements are correct
[B]Both statements are incorrect
[C]Only S1 is correct
[D]Only S1 is incorrect
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