Monica's Husband Is an Accountant Who Keeps the Books for Her

question 32

Multiple Choice

Monica's husband is an accountant who keeps the books for her business. When it goes bankrupt, will Monica's husband's claim for services be allowed by the bankruptcy courts?

• A) No, since he is an insider.
• B) No, because it would be difficult to prove that services were actually rendered.
• C) Yes, but only up to the reasonable value.
• D) Yes, as long as he is not an officer of the corporation.

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Definitions:

Sample Mean

The average value of a set of observations derived from a sample.

Standard Deviation

An indicator of the spread or distribution range of a collection of data points, showing how far apart the values in the set are from each other.

Margin of Error

The maximum amount by which the sample results are expected to differ from the true population value.

Normally Distributed

Describes a distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.