Which of the Following Statements Is Not True of 'Voluntary

question 52

Multiple Choice

Which of the following statements is not true of 'voluntary administration' under the Corporations Act 2001?

• A)It refers to a voluntary winding up by a company's shareholders.
• B)It provides the company a temporary 'safety zone' away from creditors.
• C)It commences when an administrator is appointed.
• D)It is an alternative to liquidation.

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Definitions:

Actual

The real, measured or observed value of a quantity or cost, as opposed to estimated or budgeted figures.

Budget

A quantitative plan for acquiring and using resources over a specified time period.

Static Budget

A budget prepared for a single level of activity, without changes for variations in sales or production volumes, often used for fixed expenses.

Revenue Variance

The difference between actual revenue and budgeted or forecasted revenue, indicating the effectiveness of business strategies.