Which of the following is the minimum limitation necessary for filing an involuntary bankruptcy petition in connection with a company that has 57 unsecured creditors?a. The signature of 12 creditors to whom the debtor owes at least $14,775 in unsecured debt.b. The signature of six creditors to whom the debtor owes at least $18,250 in unsecured debt.c. The signature of three creditors to whom the debtor owes at least $15,775 in unsecured debt.d. The signature of nine creditors to whom the debtor owes at least $23,225 in unsecured debt.

Which of the following is the minimum limitation necessary for filing an involuntary bankruptcy petition in connection with a company that has 57 unsecured creditors?a. The signature of 12 creditors to whom the debtor owes at least $14,775 in unsecured debt.b. The signature of six creditors to whom the debtor owes at least $18,250 in unsecured debt.c. The signature of three creditors to whom the debtor owes at least $15,775 in unsecured debt.d. The signature of nine creditors to whom the debtor owes at least $23,225 in unsecured debt.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 50P

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Choose the correct. Which of the following is the minimum limitation necessary for filing an involuntary bankruptcy petition in connection with a company that has 57 unsecured creditors?a. The signature of 12 creditors to whom the debtor owes at least $14,775 in unsecured debt.b. The signature of six creditors to whom the debtor owes at least $18,250 in unsecured debt. c. The signature of three creditors to whom the debtor owes at least $15,775 in unsecured debt.d. The signature of nine creditors to whom the debtor owes at least $23,225 in unsecured debt.
An involuntary bankruptcy petition must be filed bya. The insolvent company’s attorney.b. The holders of the insolvent company’s debenture bonds.c. Unsecured creditors with total debts of at least $15,775.d. The company’s management.
Choose the correct. An involuntary bankruptcy petition must be filed bya. The insolvent company’s attorney.b. The holders of the insolvent company’s debenture bonds.c. Unsecured creditors with total debts of at least $15,775.d. The company’s management.
In a bankruptcy, which of the following statements is true? a. An order for relief results only from a voluntary petition. b. Creditors entering an involuntary petition must have debts totaling at least $21,625. c. Secured notes payable are considered liabilities with priority on a statement of affairs. d. A liquidation is referred to as a Chapter 7 bankruptcy, and a reorganization is referred to as a Chapter 11 bankruptcy.
Choose the correct. Which of the following is not a liability that has priority in a liquidation?a. Administrative expenses incurred during the liquidation.b. Salary payable of $1,250 per person owed to 26 employees.c. Payroll taxes due to the federal government.d. Advertising expense incurred before the company became insolvent but not recorded until after the order of relief.
A company going through a Chapter 7 bankruptcy has the following account balances: How much will be paid to each of the following? Salaries payable Accounts payable Note payable Bonds payable
On January 2, 2021, WCYU learned that National Insurance, which owed the practice $200,000 at December 31, 2020, had declared bankruptcy. Unfortunately, WCYU is not expected to recuperate any of the amount owing, given the amount of the other creditors involved in the bankruptcy. It is extremely rare for a major insurer to go bankrupt and as such WCYU had not set up an allowance for doubtful accounts in the past. Since the bankruptcy notice was not received until 2021, the 3 owners decided to write-off the whole amount in 2021. Is this correct? Explain why or why not. Include the correct computations if applicable.
Which of the following is not a liability that has priority in a liquidation?a. Administrative expenses incurred during the liquidation.b. Salary payable of $1,250 per person owed to 26 employees.c. Payroll taxes due to the federal government.d. Advertising expense incurred before the company became insolvent but not recorded until after the order of relief.
Choose the correct. What is a debtor in possession?a. The holder of a note receivable issued by an insolvent company prior to the granting of an order for relief.b. A fully secured creditor.c. The ownership of an insolvent company that continues to control the organization during a bankruptcy reorganization.d. The stockholders in a Chapter 7 bankruptcy.
When does the liquidation basis of accounting first have to be applied to financial statements of a liquidating entity to be viewed as in conformity with U.S. GAAP? a. When an involuntary bankruptcy petition is approved by the court. b. When liquidation is imminent. c. When the first asset is sold. d. At least 90 days before the final asset is sold.
What is a debtor in possession?a. The holder of a note receivable issued by an insolvent company prior to the granting of an order for relief.b. A fully secured creditor.c. The ownership of an insolvent company that continues to control the organization during a bankruptcy reorganization.d. The stockholders in a Chapter 7 bankruptcy.
Choose the correct. What accounting is made for professional fees incurred during a bankruptcy reorganization?a. They must be expensed immediately.b. They must be capitalized and written off over 180 months or less.c. They must be capitalized until the company emerges from the reorganization.d. They are either expensed or capitalized, depending on the nature of the expenditure.