Under the Term of a Composition

question 180

Multiple Choice

Under the term of a composition

• A) all creditors must agree.
• B) small dissenting creditors may be paid in full immediately.
• C) a creditor committee may be formed.
• D) none of the other choices are applicable

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Definitions:

Reliable Measurement

Reliable measurement implies that the information or data provided is accurate, consistent, and can be dependably used for financial reporting and analysis.

Asset Recognition

The process in accounting to acknowledge and report an item as an asset on the balance sheet provided it meets certain criteria.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Material Amount

A sum of money that is large enough to influence the economic decisions of users based on the financial statements of an entity.