Which Statement Is True Regarding the Type of Law That

question 53

Multiple Choice

Which statement is true regarding the type of law that is relevant to bankruptcy claims?

• A)Only federal statutory law is relevant.
• B)Only federal common law is relevant to bankruptcy claims.
• C)Only state statutory law is relevant.
• D)While bankruptcy law is state law,federal law applies to bankruptcy cases in the sense that federal laws regarding debtor's property and creditor claims may apply.
• E)While bankruptcy law is federal law,state law applies to bankruptcy cases in the sense that state laws regarding debtor's property and creditor claims may apply.

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Definitions:

Interim Financial Statements

Financial reports covering a period of less than a full fiscal year, often quarterly.

Full Disclosure

A principle requiring that all material facts and information related to financial transactions be disclosed in financial statements.

Conservatism Principle

An accounting principle that advises reporting expenses and liabilities as soon as possible, but revenue only when it is ensured.

Gross Profit Method

An inventory valuation method used to estimate the cost of goods sold and ending inventory levels by applying a gross profit margin to sales.