Which of the following is always involved in planned bankruptcies?
a. Setting up a new company whose purpose is to help the perpetrator carry out the scheme
b. Purchasing inventory in increasing amounts on credit
c. Planning a bankruptcy with the creditors before a loan is made
d. The perpetrator skipping town when the bankruptcy is filed
b
FEEDBACK: a. Incorrect.
b. Correct.
c. Incorrect.
d. Incorrect.
You might also like to view...
Anna and Naomi are partners. Anna has a capital balance of $49,000 and Naomi has a capital balance of $42,000. Gary invested $27,000 to acquire an ownership interest of $18,000. Which of the following is TRUE of the partnership journal entry to record the receipt of Gary's contribution? (Assume the existing partners equally divide the bonus.)
A) Cash is debited for $27,000 and Gary, Capital is credited for $18,000. B) Cash is debited for $18,000 and Gary, Capital is credited for $18,000. C) Cash is credited for $27,000 and Gary, Capital is debited for $18,000. D) Cash is credited for $18,000 and Gary, Capital is debited for $18,000.
Brenda dislikes having to fill out performance appraisals on her employees. She vows to sit down and finish them all in one afternoon. She decides to start with her lowest performing employee to get the worst out of the way. Next, she appraises an average performer, but gives excellent ratings. After appraising that first employee, the average performer looks excellent to her. It is likely Brenda made a(n) ______ error.
A. contrast B. attribution C. recency D. proximity
Alexander Corporation issued 20-year bonds at a discount in Year 1. Will Alexander's net income for Year 1 be higher, lower, or the same as it would have been had the bonds been issued at face value? Why?
What will be an ideal response?
To prevent conflicts of interest and covert compensation schemes, the Sarbanes-Oxley Act prohibits all loans either directly or indirectly to directors and executive officers by their corporations
Indicate whether the statement is true or false