Question 1

The set of regulations governing the conduct of a company is known as:

Accepted Answer

A) listing rules 
B) a company's constitution 
C) an agenda 
D) none of the above 
A) listing rules 
B) a company's constitution 
C) an agenda 
D) none of the above B

Question 2

A receiver is usually appointed by:

Accepted Answer

A) directors 
B) shareholders 
C) debenture holders 
D) auditors 
A) directors 
B) shareholders 
C) debenture holders 
D) auditors C

Question 3

A creditor secured by a secured charge or floating charge is known as a/an:

Accepted Answer

A) secured creditor 
B) fixed creditor 
C) charged creditor 
D) none of the above 
A) secured creditor 
B) fixed creditor 
C) charged creditor 
D) none of the above A

Question 4

Which of the following statements is correct?

Accepted Answer

A) unsecured debts must be paid before secured debts 
B) secured debts must be paid before unsecured debts 
C) all shareholders must be paid in full before creditors receive any payment 
D) none of the above 
A) unsecured debts must be paid before secured debts 
B) secured debts must be paid before unsecured debts 
C) all shareholders must be paid in full before creditors receive any payment 
D) none of the above

Question 5

Which of the following is an ordinary unsecured creditor?

Accepted Answer

A) contingent creditors' claims 
B) workers' compensation obligations 
C) retrenchment payments 
D) costs of liquidation 
A) contingent creditors' claims 
B) workers' compensation obligations 
C) retrenchment payments 
D) costs of liquidation

Question 6

A company's liquidation can be:

Accepted Answer

A) members' voluntary 
B) court- ordered 
C) creditors' voluntary 
D) all of the above 
A) members' voluntary 
B) court- ordered 
C) creditors' voluntary 
D) all of the above

Question 7

Any discounts received on the payment of creditors as:

Accepted Answer

A) Credit Creditors 
B) Credit Liquidation 
C) Debit Liquidation 
D) Credit Discount revenue 
A) Credit Creditors 
B) Credit Liquidation 
C) Debit Liquidation 
D) Credit Discount revenue

Question 8

A creditor which is not a preferential creditor and which does not have security over any assets of the company is referred to as a/an:

Accepted Answer

A) non- current creditor 
B) insecure creditor 
C) unsecured creditor 
D) none of the above 
A) non- current creditor 
B) insecure creditor 
C) unsecured creditor 
D) none of the above

Question 9

External administration can include the appointment of a/an:

Accepted Answer

A) administrator 
B) liquidator 
C) receiver 
D) all of the above 
A) administrator 
B) liquidator 
C) receiver 
D) all of the above

Question 10

The recommendations made to creditors following an administrator's investigation include:

Accepted Answer

A) liquidate the company 
B) enter into a deed of arrangement 
C) terminate the administration and return control of the company to the board of directors 
D) all of the above 
A) liquidate the company 
B) enter into a deed of arrangement 
C) terminate the administration and return control of the company to the board of directors 
D) all of the above

Question 11

Identify the order of payment of creditors contained in the Corporations Act.

Accepted Answer

The order of payment is as follows: 1 Se

Question 12

Which of the following statements is incorrect?

Accepted Answer

A) the higher the debt levels or leverage,the lower the risk that a company may not be able to meet its debts as they fall due 
B) a company's assets are funded by both owners' equity and external liabilities 
C) the higher the debt levels or leverage,the greater the risk that a company may not be able to meet its debts as they fall due 
D) all of the above 
A) the higher the debt levels or leverage,the lower the risk that a company may not be able to meet its debts as they fall due 
B) a company's assets are funded by both owners' equity and external liabilities 
C) the higher the debt levels or leverage,the greater the risk that a company may not be able to meet its debts as they fall due 
D) all of the above

Question 13

The grounds for a court- ordered liquidation include which of the following?

Accepted Answer

A) the company has,by special resolution,resolved that it be wound up by the court 
B) the company is unable to pay its debts 
C) directors have been acting in their own interests rather than in the interests of the company 
D) all of the above 
A) the company has,by special resolution,resolved that it be wound up by the court 
B) the company is unable to pay its debts 
C) directors have been acting in their own interests rather than in the interests of the company 
D) all of the above

Question 14

Explain the process of a members' voluntary liquidation.

Accepted Answer

A company must be solvent to be liquidat

Question 15

Explain the nature of receivership and the major role of a receiver.

Accepted Answer

A receiver is usually appointed by deben

Question 16

Identify the grounds for a court- ordered liquidation and the duties of a liquidator under the Corporations Act.

Accepted Answer

The court may order a liquidation upon a

Question 17

A legal document used in a member's voluntary winding- up to declare that the company is able to pay its debts in full is referred to as a/an:

Accepted Answer

A) constitution 
B) declaration of solvency 
C) declaration of liquidation 
D) none of the above 
A) constitution 
B) declaration of solvency 
C) declaration of liquidation 
D) none of the above

Question 18

The journal entry for the forfeiture of shares due to calls in arrears includes which of the following?

Accepted Answer

A) Credit Call 
B) Debit Call 
C) Debit Share capital 
D) both A and C 
A) Credit Call 
B) Debit Call 
C) Debit Share capital 
D) both A and C

Question 19

A process by which a company is dissolved through selling its assets,paying off liabilities and paying any remaining amounts,if any,to shareholders is referred to as:

Accepted Answer

A) dissolution 
B) receivership 
C) administration 
D) liquidation 
A) dissolution 
B) receivership 
C) administration 
D) liquidation

Question 20

Shareholder reserves,including the retained earnings and forfeited shares reserve accounts,are closed to which account?

Accepted Answer

A) Liquidation 
B) Profit and loss summary 
C) Shareholder's distribution 
D) none of the above 
A) Liquidation 
B) Profit and loss summary 
C) Shareholder's distribution 
D) none of the above

Exam 20: External Administration, Including Liquidation

The set of regulations governing the conduct of a company is known as:

A receiver is usually appointed by:

A creditor secured by a secured charge or floating charge is known as a/an:

Which of the following statements is correct?

Which of the following is an ordinary unsecured creditor?

A company's liquidation can be:

Any discounts received on the payment of creditors as:

A creditor which is not a preferential creditor and which does not have security over any assets of the company is referred to as a/an:

External administration can include the appointment of a/an:

The recommendations made to creditors following an administrator's investigation include:

Identify the order of payment of creditors contained in the Corporations Act.

Which of the following statements is incorrect?

The grounds for a court- ordered liquidation include which of the following?

Explain the process of a members' voluntary liquidation.

Explain the nature of receivership and the major role of a receiver.

Identify the grounds for a court- ordered liquidation and the duties of a liquidator under the Corporations Act.

A legal document used in a member's voluntary winding- up to declare that the company is able to pay its debts in full is referred to as a/an:

The journal entry for the forfeiture of shares due to calls in arrears includes which of the following?

A process by which a company is dissolved through selling its assets,paying off liabilities and paying any remaining amounts,if any,to shareholders is referred to as:

Shareholder reserves,including the retained earnings and forfeited shares reserve accounts,are closed to which account?

The Nature and Environment of Companies

Company Formation, Share Capital and Debt Securities

Reserves and Profit Distribution

Published Financial Statements

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Additional Accounting Standards and Disclosures

Principles of Consolidation

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interests

Consolidation: Indirect Non-Controlling Interests

Accounting for Associates

Accounting for Joint Ventures

Accounting for Foreign Currency

Capital Reorganisation

Key Issues in Australian Corporate Governance

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