To Qualify Under Chapter 7, a Debtor Must Complete a Means

question 17

True/False

To qualify under Chapter 7, a debtor must complete a means test to determine whether the debtor has been living within his or her means.

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Definitions:

FIFO System

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.

Straight Line Amortization

A method of allocating an asset's cost evenly across its useful life.

Fair Values

An estimate of the market value of an asset or liability based on current market prices or valuations.

Retained Earnings

The cumulative amount of profits that a company has earned, less any dividends or other distributions to shareholders over its life.