Which of the Following Is NOT an Indirect Cost of Bankruptcy

question 37

Multiple Choice

Which of the following is NOT an indirect cost of bankruptcy?

• A)Legal fees
• B)Delayed liquidation
• C)Costs to creditors
• D)Loss of customers

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Definitions:

Sales On Account

Transactions where goods or services are sold and payment is deferred to a future date, effectively allowing the buyer to purchase on credit.

Cost Of Goods Sold

The total cost directly associated with producing goods sold by a business, including materials, labor, and manufacturing overhead.

Working Capital

The amount of operational liquidity available to a business, calculated as current assets minus current liabilities.

Balance Sheet

An account statement that lists a company's assets, liabilities, and the equity belonging to shareholders at a given time.