If a Voluntary Petition in Bankruptcy Is Found to Be

question 34

Multiple Choice

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

• A)puts into place an automatic stay.
• B)discharges the debtor's obligations.
• C)dismisses the petition.
• D)distributes the debtor's assets to his or her creditors.

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers accounts to ensure the sum of debits equals the sum of credits, used as a check on the accuracy of the postings.

Withdrawals

Funds taken out of a business by its owners for personal use.

Income Statement

A financial document that shows a company's revenue, expenses, and profits or losses over a specific period.

Total Revenues

The total amount of income generated by a business from its sales of goods or services before any expenses are subtracted.