A Liquidator Can Reverse a Transaction Entered into by a Company

question 13

Multiple Choice

A liquidator can reverse a transaction entered into by a company if it is a voidable transaction.However, there will be no obligation on the part of the payee under such a transaction to repay money to the liquidator if the transaction was:

• A)An insolvent and uncommercial transactions.
• B)Made in good faith for valuable consideration when there was no reason to believe the company was insolvent.
• C)An insolvent transaction with a related entity.
• D)An unfair loan.

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Definitions:

Activity-Based Costing

A financial method which identifies organizational activities and assigns each activity's costs to products and services based on the actual amount they consume.

Activity Cost Pools

Collections of overhead costs assigned to specific activities, used in activity-based costing to allocate costs more accurately.

Activity Rates

Rates used in activity-based costing to allocate costs to products or services based on the activities they require.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on their usage of resources.