Thirty-One Days Before Filing a Petition in Bankruptcy,Dee Transfers Prop-Erty

question 48

Multiple Choice

Thirty-one days before filing a petition in bankruptcy,Dee transfers prop-erty and makes payments that favor one creditor over another.These are

• A)affirmation agreements.
• B)preferences.
• C)secured interests.
• D)unsecured debts.

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Definitions:

Debt to Total Assets

A financial ratio indicating the percentage of a company's assets financed by creditors as opposed to equity.

Times Interest Earned

A financial ratio that measures a company’s ability to meet its interest payments based on its earnings before interest and taxes.

Interest Expense

The cost incurred by an entity for borrowing funds over a period of time, often expressed as an annual percentage of the principal.

Income Before Taxes and Interest

Net earnings of a company before accounting for interest and tax expenses, used to analyze operating performance without financing or tax influences.