A Transfer of Property by the Debtor to a Creditor

question 53

Multiple Choice

A transfer of property by the debtor to a creditor may be set aside as a __________ transfer and the property recovered by the debtor's trustee in bankruptcy if (1) the transfer was made to pay a debt incurred at some earlier time;(2) the transfer was made when the debtor was insolvent and within ninety (90) days before the filing of the bankruptcy ;and (3) the transfer resulted in the creditor receiving more than the creditor would have received in a liquidation of the debtor's estate.

• A) predetermined
• B) preternatural
• C) preordained
• D) preferential

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Definitions:

Journal Entries

These are records of financial transactions in the accounting system, made in chronological order.

Consolidated Financial Statements

Financial statements that aggregate all assets, liabilities, and operating activities of a parent company and its subsidiaries.

Book Value

The net value of an asset or liability recorded in the financial statements, often equal to its cost minus accumulated depreciation or amortization.

IFRS 3

IFRS 3 is an International Financial Reporting Standard that provides guidance on accounting for business combinations, requiring entities to measure the acquiree's assets and liabilities at their fair values at the acquisition date.