Who Is Responsible for Gathering the Bankrupt's Assets and Dividing

question 22

Multiple Choice

Who is responsible for gathering the bankrupt's assets and dividing them among creditors?

• A)the executor
• B)the state court
• C)the creditors' committee
• D)the trustee

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Definitions:

Allowance Method

A method of accounting that estimates and sets aside an amount for potentially uncollectible receivables.

Bad Debts

Receivables from accounts deemed not collectable, which constitute financial losses for the business.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable balance within a specific period.

Net Sales

The net sales revenue of a company, calculated after deducting returns, allowances for damage or loss, and any discounts.