What is a LIFO 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: What has been the rationale for LVMH acquisitions

A: Question is based on the concept of business management

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: What is Insolvencey?

A: Liability: It is the legal financial debt owed by a company to outside entities that arises over the…

Q: Why is consignment not a sale?

A: The companies derived revenue by selling goods or delivering services. The companies main objective…

Q: Would the sale be on an underwritten or bestefforts basis?

A: It is one of the most significant capacities in the money related world wherein an individual or a…

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 do the financial statements of the acquirer include?

A: In consolidation or merger or acquisition there is an acquirer and an acquiree The acquire purchases…

Q: Why are administrative expenses that are incurred during a liquidation classified as liabilities…

A: Administrative expenses are those expenses related to liquidating cost and preserving the assets, in…

Q: What is a Creditors Reconciliation ?

A: Reconciliation refers to the various balances in the books we keep, whereas third-party…

Q: What does the term insolvent mean?

A: When a person's liabilities exceed the assets owned by him and he is unable to pay the debts which…

Q: What is the effect of loss of the thing or object in a contract of sale?

A: What is the Sale of contract: It is the legal contract between seller and buyer to sale the goods at…

Q: Explain priority of claims in liquidation

A: The priority of claims in chapter 7 liquidation ensures that the debtor’s assets are equally…

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: What are some motives for divestitures?

A: The question is based on the concept of divestiture strategy, which is used by company to overcome…

Q: Liquidation Premise of valuation

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

Q: What Constitutes Default?

A: When an individual or a company is unable to pay the loan amount then it's termed as default. It…

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 Foreclosure property?

A: Foreclosure property means if someone who has lent money to an individual or association so that…

Q: In liquidation, who will not recieve initial settlement?

A: Liquidation:- Liquidation is the process in which a company become insolvent, means they cannot able…

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: What is insolvent?

A: The tern insolvency is failure to pay the borrowed money on time. This can be both an individual or…

Q: What are the reporting issues in a sale with a repurchase agreement?

A: Repurchase agreement: A form of short term borrowing for dealers in government securities is called…

Q: Explain term Foreclosure?

A: Foreclosure:

Q: What is meant by Premium on redemption of debentures account?

A: Premium on redemption of debenture account: Premium on redemption of debenture is the amount paid to…

Q: What is meant by issue of debentures as “Purchase Consideration”.

A: Debenture is a long term or medium term debt instrument issued to borrow loan.

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: 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: How does IFRS differ from U.S. GAAP with respect to using the equity method?

A: Equity method:

Q: Define Noncash Acquisitions.

A: The acquisition involves one party selling out to another wherein the buying party combines both the…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

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 lump-sum purchase, and how is it accounted for?

A:

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: Explain The Auction Process?

A: An auction is the place or thing where potential buyers and seller gather to publicly bid for the…

Q: Define divestiture

A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…

Q: What does insolvent mean

A: Insolvent is a term that relates to the debtors payment.

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: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

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: