The Major Difference Between Chapter 7 and Chapter 11 Is

question 15

Multiple Choice

The major difference between Chapter 7 and Chapter 11 is that:

• A)liquidation occurs in Chapter 11 but reorganization is the objective under Chapter 7.
• B)there is no priority of claims under Chapter 11.
• C)liquidation automatically occurs in Chapter 7 but may or may not occur under Chapter 11.
• D)no administrative or legal costs are incurred under Chapter 7.
• E)Chapter 11 is voluntary and Chapter 7 is involuntary.

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Definitions:

Process Costing System

An accounting method used where goods are produced in a continuous process, costs are averaged over the units produced to determine per unit cost.

Dust Density Sensors

Devices used to measure the concentration of particulate matter in the air for environmental monitoring or industrial processes.

Weighted-Average Method

A technique that figures out the cost of sold goods and the finishing inventory value, by averaging the cost of all items up for sale.

Labour and Overhead

Combined costs of workforce (both direct and indirect labor) and overhead expenses incurred during production.