Personal Insolvency Can Be Legally Satisfied by

question 25

Multiple Choice

Personal insolvency can be legally satisfied by

• A) Chapter 13 bankruptcy.
• B) relinquishing all credit cards.
• C) Chapter 7 bankruptcy.
• D) b and c above.
• E) a and c above.

---

Definitions:

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets the company has available to build its business.

Net Investment

The total amount spent by a company on acquiring new assets, after subtracting disposals, intended to enhance the business’s earning capacity.

Plant Expansion

Plant expansion involves the process of enlarging a company's physical facilities, such as manufacturing plants or service centers, aiming to increase production capacity or operational efficiency.