Explain priority of claims in liquidation

Q: Why do liquidations usually result in losses for the creditors or the owners, or both? Would partial…

A: Solution- Liquidations usually result in losses for the following reasons: a) Assets typically have…

Q: Understand supplemental LIFO disclosures and the effect of LIFO liquidations onnet income.

A: The LIFO strategy works under the presumption that the last item of stock acquired, is the item that…

Q: The statement of realization and liquidation reports the actual results of a liquidation whereas a…

A: The answer is True Refer step 2 for explanation

Q: What are the Criteria of “Creditable Acquisitions” Please describe!

A: There are many factors that determine if an acquisition is a creditable one or not and for which we…

Q: What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?

A: Since there is no revenue and expense of the acquire upto the date of acquisition.

Q: Installment Liquidation

A: Dissolution is  1.the act or process of resolving or dissolving into parts or elements.2.the…

Q: What is the impact of subordination on the final allocation of proceeds from liquidation?

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Q: Discuss the appropriate treatment in the income statement for the following items: a.    Loss on…

A: Income statement:   In this statement, the financial records of the company's monetary performance…

Q: Liquidation Premise of valuation

A: Liquidation represents the end of the business operations of the company that includes the forced…

Q: Define each of the following terms:e. Priority of claims in liquidation

A: Answer: Liquidation is a mechanism by which the corporation liquidates properties to repay the debt…

Q: Explain the difference between the legal powers and responsibilities of a reciever and liquidator

A: Receiver is the person who has a duty of manage the assets of a company during a law suit, whereas,…

Q: What is the purpose of a proposed schedule of liquidation, and how is it developed?

A: Partnership: This is the form of business entity that is formed by an agreement, owned and managed…

Q: Outline the circumstances in which voluntary and involuntary liquidation may occur

A: Solution:- Liquidation means shutting down the business or ceasing the operations of an entity. It…

Q: Question i Explain the purpose of the pre-acquisition entries in the preparation of consolidated…

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Which of the application of of a. Presenting a the related s b. Deducting fe gains and pr c.…

A: Presentation of Financial Statements PAS 1 describes the basis for presenting the general purpose…

Q: Explain instances when liquidation value should be used in valuation and why it should be used over…

A: The liquidation value method is the net fee of a corporation's bodily property if it has been to…

Q: Analyze why disposition rather than acquisition is a characteristic

A: Gain or Loss on Disposition refers to the gain or loss resulting from the sale, exchange, or other…

Q: Describe the accounting treatment for costs subsequent to acquisition.

A: Costs subsequent to acquisition: It refers to those additional expenditures which are related to the…

Q: Define Liquidation?

A: Liquidation is the process through which an entity comes to an end and is being formally closed. It…

Q: Define the term Liquidation.

A: Liquidation is the process of bringing a business to an end and distributing its assets to…

Q: Describe a variable interest entity, a primary beneficiary, and the factors used to decide when a…

A: Variable interest entity (VIE) It refers to an arrangement where the investor has a controlling…

Q: Define assignee (in informal liquidation)

A: The large corporate may face failures each year due to economic factors like weakness of the…

Q: Can someone make the “statement of liquidation?”

A: Answer are as follows

Q: What does it take for a redemption to be qualified as the results of a partial liquidation?

A: Partial Liquidation: Partial liquidation means a situation that amounts to partial liquidation like…

Q: Describe the concepts and valuation principles underlying the acquisition method of accounting for…

A: Acquisition: The acquisition refers to the business combination when one entity or organization…

Q: Required: Record the admission of Sonny (and asset revaluation, if any) for each of the following…

A: The form of business organization which is established as per the partnership act, is known as…

Q: What is the purpose of a statement of liquidation? What information does it convey to its readers?

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: explain the main different between acquisition method, interest pooling g method and the purchase…

A: Acquisition is one type of mergers and acquisitions, where pooling-of-interest method and purchase…

Q: What are the arguments for giving separate accountingrecognition to the conversion feature of…

A: The separate accounting for recognition is needed as convertible debenture has the feature of…

Q: What is a LIFO liquidation?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Describe briefly the priority of claims in a formal liquidation.

A: Liquidation is a process in which the business of an organization comes to an end.

Q: Define assignment (in informal liquidation)

A: When the performance of a firm is very poor where its existence is a mere waste, there would also be…

Q: entries in the preparation of consolidated financial statements.

A: Consolidated financial statements: Consolidated financial statements are the financial statements of…

Q: Explain what purpose the statement of realization and liquidation serves.

A: If an organization winds-up or liquidates due to under performance or poor performance. Then it…

Q: Explain the nature of interest on debentures.

A: A fixed amount of money which is paid in the form of interest to the holders of the debentures at…

Q: Provide an explanation of the circumstances under which assets and liabilities are de-registered.

A: This question deals with the circumstances under which assets and liabilities are de-registered.

Q: What will be the statement of liquidation?

A: Statement of the liquidation is the statement which is prepared when the business of the company or…

Q: Define LIFO liquidation.

A:

Q: List the priority of claims for the distribution of a liquidatedfirm’s assets.

A: Liquidation:  The liquidation process generally takes place when the firm is deemed to be far gone…

Q: Explain the adjustments made in the equity method when the fair value of the net assets underlying…

A: When a company follows equity method when it has significant influence over such company.The…