Tae Is Insolvent

question 73

Multiple Choice

Tae is insolvent.He has selected an Official Receiver to aide him in his bankruptcy proceedings.Tae tells the Official Receiver he wants to file a proposal.Which of the following is most likely to be TRUE?

• A)Any one of his creditors can still apply for a bankruptcy order.
• B)Only secured creditors can apply for a bankruptcy order.
• C)Tae may include a composition, giving him more time to resolve his debts.
• D)If Tae includes a scheme of arrangement, he must inform his creditors of all actions performed with his assets.
• E)Tae may include a liquidation proposal, which is a similar process to bankruptcy, but with more control for the Tae.

---

Definitions:

Post-Closing Trial

A trial balance prepared after all closing entries are made, serving to test the equality of debits and credits as a final check at the end of an accounting period.

General Ledger

A complete record of all financial transactions over the life of a company, serving as a primary tool for financial reporting.

General Ledger

The primary accounting record of a company or organization in which all transactions are recorded, including assets, liabilities, equity, revenue, and expenses.