An Extended Time Payment Plan

question 25

Multiple Choice

An extended time payment plan:

• A) does not provide for a discharge of the debtor.
• B) provides for a discharge of the debtor.
• C) does not require creditors holding the same type or class of claim to be treated the same way.
• D) will not allow the debtor to pay the debts in installments if the debtor's creditors had not originally agreed to such installments.

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Definitions:

Goodwill Impairment

The financial recognition that the value of the goodwill acquired in a business combination has decreased, indicating that the carrying value of the goodwill is no longer supported by the future economic benefits it was expected to generate.

Reporting Unit

A component of an entity for which discrete financial information is available and is reviewed regularly by the operating segment's management.

Fair Value

The sum fetched from the sale of an asset or spent on the transition of a liability in a smooth transaction involving market participants at the time of assessment.

Foreign Currency Nonmonetary Assets

Assets that are not in cash and are not expected to be converted into cash in the near future, valued in a currency other than the entity's functional currency.