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What is the main purpose of preparing a Liquidator's Final Statement of Account?
- a)To showcase the financial performance of the company in its final year of operation.
- b)To document the liquidator's qualifications and achievements during the winding up process.
- c)To distribute the remaining assets among the shareholders.
- d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.
Correct answer is option 'D'. Can you explain this answer?
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What is the main purpose of preparing a Liquidator's Final Statement o...
The main purpose of preparing a Liquidator's Final Statement of Account is to provide a comprehensive record of the liquidator's activities, including the realization of assets, payments to creditors, and distribution of funds, throughout the winding up process.
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What is the main purpose of preparing a Liquidator's Final Statement o...
Importance of Liquidator's Final Statement of Account
Preparing a Liquidator's Final Statement of Account is a crucial step in the winding up process of a company. It serves several important purposes:
Record of Activities
- The main purpose of the statement is to provide a detailed record of the liquidator's activities during the winding up process. This includes asset realization, debt payments, and any other transactions carried out by the liquidator.
Transparency and Accountability
- The statement helps ensure transparency and accountability in the liquidation process. By documenting all financial transactions and decisions made by the liquidator, it provides a clear record of how the company's assets were managed and distributed.
Legal Requirement
- In many jurisdictions, preparing a Liquidator's Final Statement of Account is a legal requirement. It is often submitted to the court or relevant authorities as part of the formal winding up process.
Protection for the Liquidator
- The statement can also serve as a form of protection for the liquidator. By documenting all activities and decisions made during the winding up process, the liquidator can demonstrate that they have acted in accordance with their duties and responsibilities.
Distribution of Assets
- Additionally, the statement is used to calculate and document the distribution of remaining assets among the company's creditors and shareholders. It provides a clear overview of how the company's assets were realized and distributed during the liquidation process.
In conclusion, preparing a Liquidator's Final Statement of Account is essential for providing a detailed record of the liquidator's activities, ensuring transparency and accountability, meeting legal requirements, and facilitating the distribution of remaining assets.
Preparing a Liquidator's Final Statement of Account is a crucial step in the winding up process of a company. It serves several important purposes:
Record of Activities
- The main purpose of the statement is to provide a detailed record of the liquidator's activities during the winding up process. This includes asset realization, debt payments, and any other transactions carried out by the liquidator.
Transparency and Accountability
- The statement helps ensure transparency and accountability in the liquidation process. By documenting all financial transactions and decisions made by the liquidator, it provides a clear record of how the company's assets were managed and distributed.
Legal Requirement
- In many jurisdictions, preparing a Liquidator's Final Statement of Account is a legal requirement. It is often submitted to the court or relevant authorities as part of the formal winding up process.
Protection for the Liquidator
- The statement can also serve as a form of protection for the liquidator. By documenting all activities and decisions made during the winding up process, the liquidator can demonstrate that they have acted in accordance with their duties and responsibilities.
Distribution of Assets
- Additionally, the statement is used to calculate and document the distribution of remaining assets among the company's creditors and shareholders. It provides a clear overview of how the company's assets were realized and distributed during the liquidation process.
In conclusion, preparing a Liquidator's Final Statement of Account is essential for providing a detailed record of the liquidator's activities, ensuring transparency and accountability, meeting legal requirements, and facilitating the distribution of remaining assets.
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What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer?.
What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer?.
Solutions for What is the main purpose of preparing a Liquidator's Final Statement of Account?a)To showcase the financial performance of the company in its final year of operation.b)To document the liquidator's qualifications and achievements during the winding up process.c)To distribute the remaining assets among the shareholders.d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com.
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