Various Reports Can Be Prepared When a Company Is Involved $\quad$

question 7

Multiple Choice

Various reports can be prepared when a company is involved in an external administration including:
I. $\quad$ chronological listing of receipts and payments
II. $\quad$ summary of receipts and payments since the commencement of the administration
III. $\quad$ cash position
IV. $\quad$ supporting schedules
V. $\quad$ statement of position in winding up
-A liquidator will prepare the following reports:

• A)each of I, II, III, IV and V
• B)I and II only
• C)I only
• D)none of I, II, III, IV and V

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Definitions:

Retention Ratio

This ratio indicates the percentage of a company's earnings not distributed as dividends but reinvested in the business.

Return On Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity.

Fixed Asset Capacity

The maximum output or production level that can be achieved using the existing fixed assets under normal circumstances.

Growth Rate

The measure of an entity's increase in size, value, or quantity over a specific period, often expressed as a percentage.