Ordinary Bankruptcy Occurs When a Debtor Files an Application with a Court

question 51

True/False

Ordinary bankruptcy occurs when a debtor files an application with a court claiming that debts exceed assets and asks to be declared bankrupt.

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Definitions:

Accountant

A professional who manages, audits, and analyzes financial records and transactions for individuals, businesses, and organizations.

Ledger

A-book or digital record that summarizes and categorizes all financial transactions of a business during an accounting period.

Normal Debit Balance

The expected balance type of an account based on conventional accounting rules; assets and expenses usually have a normal debit balance.

Company's Records

Documentation and books kept by a company containing important information such as financial transactions, contracts, and employee records.