Corpo Liqui

c. 3 years

After the date of corporate dissolution, what is the maximum period allowed by law to a dissolved corporation to complete its liquidation process? a. 1 year b. 2 years c. 3 years d. 4 years

c. Assets pledged with partially secured creditors

A (an) asset that are expected to realize an amount below the related debt. a. Free assets b. Assets pledged with fully secured creditors c. Assets pledged with partially secured creditors d. Current assets

b. Partially secured liabilities

A liability that have collateral (pledged assets), the proceeds of which are expected to be insufficient to satisfy the indebtedness. a. Fully secured liabilities b. Partially secured liabilities c. Unsecured liabilities with priority d. Unsecured liabilities

b. Trustee

A person appointed because of fraud, dishonesty, incompetence, or gross mismanagement by current owners or managers, or to protect the interests of creditors or stockholders of the enterprise. a. Accountant b. Trustee c. stockholders d. CEO

a. Free assets

Assets that are not pledged and are available to satisfy the claims of creditors with priority, partially secured creditors, and unsecured creditors. a. Free assets b. Asset pledged c. Total assets d. Fully secured assets

c. capital

Balances summarizing the interests of the owners in the business are reported under the heading. a. Total assets b. Total liabilities c. capital d. revenue

d. debtor in possession

During the process of reorganization, management or owners of the business enterprise may continue to operate the enterprise as___________? a. Trustee b. Examiner c. debtor d. debtor in possession

c. I, II & III

In constructing the statement of affairs, it will prove most convenient to proceed in the following manner. I. The section headings for the statement should first be set up, with adequate space left between these for the data to be shown. II. Each liability should be considered and reported in the appropriate liability section. If a liability is secured, the related assets should be considered at this time and reported in the appropriate asset section. III. After all liabilities have been considered, together with assets pledged on such claims, remaining assets represent unpledged items and may be listed as such. IV. Assets pledged or mortgaged are offset against the corresponding obligations to arrive at the estimated amount thereof available. a. I, II, III &IV b. II, III & IV c. I, II & III d. none of the above

b. Regional Trial Court

In which the debtor's or creditor's petition for bankruptcy liquidation is filed oversees all aspects of the bankruptcy proceedings. a. Court of Appeal b. Regional Trial Court c. Legal Statement of Affairs d. Board of Accountancy

a. Statement of affairs

It provides information concerning how much money each class of creditors can expect to receive on liquidation of the company, assuming assets are converted into cash at the estimated realizable values used in preparing the statements. a. Statement of affairs b. Statement of realization and liquidation c. Statement of assets and liabilities d. Legal statement of trustees

b. Insolvency

It refers to the financial condition of a person or business enterprise. a. Bankruptcy b. Insolvency c. liquidation d. capacity

a. Unsecured liabilities

Liabilities that have no collateral (pledged assets) relating to their indebtedness. a. Unsecured liabilities b. Unsecured liabilities with priority c. Partially secured liabilities d. Fully secured liabilities

d. voluntary insolvency

The debtor has insufficient assets to pay its debt in full, when the insolvent entity itself petitions Regional Trial Court that it be declared as insolvent. a. Involuntary insolvency b. Insolvent creditors c. insolvent debtors d. voluntary insolvency

b. Deficiency

What is the term used when the total stockholder's equity has debit balance? a. Deficit b. Deficiency c. Delinquency d. Default

a. Estimated Deficiency to unsecured Creditors

When the estimated amount available to unsecured creditors is not sufficient to cover their claims, the difference is called __________? a. Estimated Deficiency to unsecured Creditors b. Unsecured creditors or unsecured amount of liabilities c. Total free assets or estimated amount available d. Total free assets to unsecured creditors

a. Fully secured creditors

Which of the following creditors can always fully recover its claim from a dissolved corporation during corporate liquidation? a. Fully secured creditors b. Partially secured creditors c. Unsecured creditors with priority d. Unsecured creditors without priority

b. Assets reserved for partially secured credits

Which of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? a. Assets reserved for fully secured credits b. Assets reserved for partially secured credits c. Unsecured portion of partially secured liabilities d. Assets not used as collateral for any liability

a. Corporate liabilities to employees

Which of the following unsecured debts with priority shall be paid first during corporate liquidation? a. Corporate liabilities to employees b. Obligations arising from corporate crime c. Corporate liabilities arising from taxes to government d. Obligations arising from corporate tort or quasi-deficit