The Details Below Were Extracted from the Accounting Records of Great

question 33

Multiple Choice

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation) .

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.
For preference shareholders, what is the amount of the actual refund or call?

• A) A refund of $17 500.
• B) A call of $17 500.
• C) A refund of $10 000.
• D) A call of $22 500.

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Definitions:

Electric Insulator

A material whose internal electric charges do not flow freely, making it capable of preventing the passage of electric current.

Ependymal Cells

Glial cells that line the ventricles in the brain and the central canal of the spinal cord, involved in the production and circulation of cerebrospinal fluid.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, playing a key role in cushioning the brain, removing waste, and providing nutrients.

Phagocytes

White blood cells that protect the body by ingesting harmful foreign particles, bacteria, and dead or dying cells.