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

question 4

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 voluntary administrator 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:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.

Break-even Level

The point at which total costs equal total revenues, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the volume of sales.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent or salaries.