A Net Loss Results in a Decrease in

question 112

Multiple Choice

A net loss results in a decrease in

• A)revenues.
• B)expenses.
• C)owner's equity.
• D)liabilities.

---

Definitions:

Cram-down Provision

A legal mechanism in bankruptcy proceedings allowing a court to approve a reorganization plan over the objections of some creditors.

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize and try to stay afloat while temporarily holding creditors at bay.

Bankruptcy Action

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to the legal process of liquidating assets to pay creditors.

Civil Penalties

Fines or sanctions imposed by a civil court on individuals or entities as a consequence of violating statutory law or regulatory requirements.