When an Administrator Is Appointed to a Company They Must

question 9

Multiple Choice

When an administrator is appointed to a company they must give an opinion as to the best of three options available to creditors. Which of the following is not one of the options available?

• A) To end the voluntary administration and return the company to the director's control.
• B) To end the voluntary administration and appoint a receiver.
• C) To approve a deed of company arrangement through which the company will pay all or part of its debts and then be free of those debts.
• D) To wind up the company and appoint a liquidator.

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Definitions:

Income Statement

Financial statement that displays a company’s revenues and expenses, and ultimately its profit or loss, over a particular period, offering insight into its operational efficiency.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals, used to verify the balance of debits and credits.

Insurance Policy

An insurance policy is a contract between an insurer and an insured, outlining the terms under which the insurer agrees to compensate the insured for specific losses.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.