Creditors of Northern Hydraulics File an Involuntary Bankruptcy Petition Against

question 33

Multiple Choice

Creditors of Northern Hydraulics file an involuntary bankruptcy petition against the company,and the petition is approved.What is true of Northern Hydraulics?

• A)Northern Hydraulics has at least $10,425 in debts.
• B)There are at least 12 creditors.
• C)A custodian has automatically been appointed.
• D)It must make all the filings necessary under a voluntary petition.

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Definitions:

Tax Ramifications

The potential consequences and effects that specific tax laws and policies can have on an individual's or company's financial situation.

FIFO

FIFO, or First-In, First-Out, is an inventory valuation method where goods first bought are the first to be sold.

Replacement Cost

The current cost of replacing an asset with a new one of the same kind and quality.

Inventory Turnover

A metric that measures the number of times a company sells and replaces its stock of goods during a certain period.