Chapter 11 bankruptcy requires immediate liquidation of assets of the company by a trustee. A. True...
Chapter 11 bankruptcy requires immediate liquidation of assets of the company by a trustee.
A. True
B. False
Homework Answers
Hi,
Bankruptcy can be of chapter 7 and chapter 11 type.
In chapter 7, companies are past any stage of reorganizing again and must sell off its assets immediately.
But in chapter 11, firms still do have chance and can try to organize it's debt and try to get back into it's foot.
Hence above statement is false.
Thanks
Add Answer to:
Chapter 11 bankruptcy requires immediate
liquidation of assets of the company by a trustee.
A. True...
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A trustee has been appointed for Pace Inc., which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76.800. Cost of goods sold were $60.800. consisting of all inventory transferred from Pace. 2. The trustee sold all $12.700 worth of marketable securities for $9.800. 3. Receivables collected by the trustee: old: New: $20,890 of the $38,100 transferred $46,609 4. Depreciation...
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