Which of the Following Is True of Chapter 7 of the U.S

question 53

Multiple Choice

Which of the following is true of Chapter 7 of the U.S. Bankruptcy Code?

• A)The 2005 Act gives debtors better means to obtain a Chapter 7 bankruptcy.
• B)Under Chapter 7, a debtor is denied the right to a trustee.
• C)It features a dollar-based means test and a median income test based on a debtor's state of residence.
• D)The 2005 Act in effect pushed many debtors out of Chapter 7 and into Chapter 15 debt-adjustment bankruptcy.

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Definitions:

Freight-Out

Costs associated with shipping products to customers, typically classified as a selling expense.

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered a non-operating expense on the income statement.

Gross Profit

The revenue a company retains after subtracting the expenses related to the production and sale of its goods or the provision of its services.

Operating Expenses

Recurring expenses related to the normal operations of a business, such as salaries, rent, utilities, and marketing costs, excluding the cost of goods sold.