The Details Below Were Extracted from the Accounting Records of Great

question 26

Multiple Choice

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation) . $\begin{array}{ll}&\$\\40000 \$ 1 \text { preference shares fully paid } & 40000 \\ 120000 \$ 1 \text { ordinary shares paid to } 50 \text { cents } & \underline{60000} \\ & \underline{100000}\\\\ \text { Cash available (after payment of all creditors) }&10000\end{array}$


Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.
What will be the deficiency or surplus apportioned to ordinary shareholders?

• A) A surplus of $17 500
• B) A deficiency of $17 500
• C) A surplus of $67 500
• D) A deficiency of $67 500

Analyze flexible budgets and understand how changes in activity levels affect budgeted income.

Detail the process of creating planning and flexible budgets and the importance of accuracy in budgeted figures.

Interpret the impact of actual activity levels on budgeted outcomes, including direct materials, direct labor, and overhead expenses.

Evaluate budget performance by comparing actual results with budgeted figures to determine variances.

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Definitions:

Pool Funds

Combining resources or capital from multiple investors to form a larger investment fund, often managed professionally, allowing for diversified investments and shared risks.

Active Roles

In IT and business, active roles refer to the permissions or duties assigned to a user or employee that allow them to engage with certain data, systems, or tasks within an organization.

Running of Business

The day-to-day operations and management of a business, encompassing all aspects from production to marketing.

Best Efforts Underwriting

Underwriter sells as much of the issue as possible, but can return any unsold shares to the issuer without financial responsibility.