Advance Financial Accountancy

1) The first item in order of payment to be made by liquidator is:

• a) Secured creditors

• b) Preferential creditors

• c) Liquidation expenses

• d) Preferential creditors

Liquidator’s statement of receipts and payment is know as:

• Cash flow statement

• Cash book

• Liquidator’s final statement of account

• Deficiency account

The liquidator final statement of account is prepared

• Only in case of creditor voluntary winding up

• Only in case of members voluntary winding up

• Only in case of compulsory winding up

• Whatever may be

The deficiency shown by deficiency account will be equal to the deficiency revealed by

• Liquidator final statement of account

• Liquidator report

• Statement of affairs

• None

Insolvent Companies Can Be Liquidated

• Compulsory

• Optional

• Order

• All the Above