Identify and Define the Three Major Types of Bankruptcy

question 32

Essay

Identify and define the three major types of bankruptcy.
Provides the opportunity to reorganize and make the venture more solvent
Voluntarily allows individuals with regular income the opportunity to make extended time payments
Requires the venture to liquidate,either voluntarily or involuntarily

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Definitions:

IFRS Categories

Classifications under the International Financial Reporting Standards that dictate the presentation and disclosure of financial information in the financial statements.

Cash Flows

The sum of funds being moved in and out of a company, particularly influencing its ability to meet short-term obligations.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

IFRS

International Financial Reporting Standards, a set of accounting rules and standards that define how transactions and other accounting events should be reported in financial statements. They are designed to be globally consistent to enhance international comparability and quality of financial statements.