Advanced Financial Accounting - 1 (COM543C)

1.  Which of the following will be treated as preferential creditors?

• Government Taxes

• 1. Trade Creditors.

• 1. Unsecured loans.

 ……………. Are paid last, in the order of payment by the liquidator

• Preference shareholders

  
  

• Equity shareholders

  
  

• Unsecured creditors

  
  

If the company is…………… interest due on debentures shall be paid up to the date of actual payment.

• Insolvent

  
  

•  Solvent

  
  

• Bankrupt

  
  

Pre acquisition profit in subsidiary company is considered as

• Capital profit

  
  

• Revenue profit

  
  

• Goodwill

• Reserve

Minority interest includes

• Share in share capital

  
  

• Share in capital profit

  
  

• Share in revenue profit

  
  

• All of the above

  
  

In case of sub division of share capital, the total number of shares -

• Increases

• Decreases

• Doesn't change

If the creditors are willing to reduce their claims against the company , then the amount of reduction in their claim will be transferred to

• Share Capital A/C

• Capital Reduction A/C

• Creditors A/C