After a Sequestration Order Has Been Made the Trustee in Bankruptcy

question 47

Multiple Choice

After a sequestration order has been made the trustee in bankruptcy does not have an obligation to:

• A)Consider whether the bankrupt has committed any offences under the Bankruptcy Act 1966 (Cth).
• B)Determine whether the bankrupt has, in the past, made transfers of property that ought to be reversed.
• C)Notify creditors of the bankruptcy and evaluate what can be sold to pay debts.
• D)Give priority to the repayment of debts owed to members of the bankrupt's family.

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Definitions:

Manufacturing Overhead Applied

The portion of manufacturing overhead costs allocated to individual units of production based on a predetermined overhead rate.

Cost of Goods Manufactured

Cost of goods manufactured refers to the total production cost of goods that are completed during a specific accounting period, including material, labor, and overhead costs.

Factory Depreciation

The reduction in value of manufacturing equipment and facilities over time, considered an indirect manufacturing cost.

Overapplied Overhead

A situation in which the overhead allocated to products exceeds the actual overhead costs incurred.