In What Way Are a Debtor,a Creditor,and a Trustee Treated

question 2

Multiple Choice

In what way are a debtor,a creditor,and a trustee treated similarly under the Bankruptcy and Insolvency Act?

• A) All may commit criminal violations known as bankruptcy offences.
• B) All may commit a bankruptcy offence by violating specific duties established in law.
• C) All commit a bankruptcy offence if they accept payments exceeding their entitlement.
• D) All commit a bankruptcy offence if they acting in a conflict of interest.

---

Definitions:

Retained Earnings

The part of the net earnings not paid out as dividends to shareholders but instead retained by the business for reinvestment purposes or debt repayment.

Cumulative Earnings

The total amount of net income a company has earned over its existence, after dividends and other distributions are subtracted.

Accounting Equation

A fundamental principle representing the relationship among assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Transactions

The exchange of goods, services, or funds between two or more parties in accounting, each recorded as an entry.