A Composition Would Bind All of the Debtor's Creditors to the Settlement

question 16

True/False

A composition would bind all of the debtor's creditors to the settlement.

---

Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Credit

In accounting, it refers to the entry that decreases assets or increases liabilities and equity on the company's balance sheet.

Collections

The act of seeking out the settlement of debts from businesses or individuals.

Operating Activities

Cash flows related to the day-to-day functioning of a business, such as selling products or services, which are included in the first section of the cash flow statement.