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7 marksInsolvency: Liquidation and Receivership

CAPE Accounting Unit 1 · 2015 · Paper 2 · Question 3(d)(ii)

Order of priority of claims for an insolvent business.

Copy Table 2 into your answer booklet. Complete the table to show how items a) to g) should be classified under Secured Claims, Partly Secured Claims, or Unsecured Claims.

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Other parts of this question

  1. 3(a)Prepare common size statements for Siscco Ltd. From these, prepare a report to analyse the performance of the company, focusing on liquidity and profitability…[14 marks]
  2. 3(b)List THREE limitations of ratio analysis.[3 marks]
  3. 3(c)(i)Outline TWO examples of events that would be disclosed in the financial statements as required by Section 32.[4 marks]
  4. 3(c)(ii)Explain the meaning of 'conditions that existed at the end of the reporting period' and give ONE example.[4 marks]
  5. 3(d)(i)List THREE duties of the receiver in a bankruptcy situation.[3 marks]

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