How Is a Determination Made Regarding Selection of the Permanent

question 94

Multiple Choice

How is a determination made regarding selection of the permanent trustee in a Chapter 7 proceeding?

• A)The bankruptcy judge appoints the trustee.
• B)The bankruptcy executor appoints the trustee.
• C)The court clerk appoints the trustee.
• D)The debtor appoints the trustee.
• E)The creditors elect the trustee.

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Definitions:

Outstanding Accounts

Accounts or invoices that have been billed but not yet paid by customers.

EBIT

Earnings Before Interest and Taxes, a financial metric indicating a company's operating profitability by excluding interest and taxes from earnings.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expenses are a non-operational cost affecting the company’s net income.

Times Interest Earned Ratio

A financial metric used to evaluate a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.