Question 1

Which of the following is NOT listed as a duty of the trustee in a Chapter 7 bankruptcy?

Accepted Answer

A)  Furnish information about the estate and its administration 
B)  Ensure that the debtor files the statement of intention to retain or surrender property 
C)  After confirmation of a plan, file such reports as are necessary or as the court orders 
D)  Oppose the discharge of the debtor when appropriate 
A)  Furnish information about the estate and its administration 
B)  Ensure that the debtor files the statement of intention to retain or surrender property 
C)  After confirmation of a plan, file such reports as are necessary or as the court orders 
D)  Oppose the discharge of the debtor when appropriate C

Question 2

Which of the following has a lower fine dollar amount limit than the others?

Accepted Answer

A)  Willful failure to file return, supply information, or pay taxes 
B)  Willful failure to collect or pay tax 
C)  Attempt to evade or defeat tax 
D)  Attempt to interfere in the administration of Internal Revenue laws 
A)  Willful failure to file return, supply information, or pay taxes 
B)  Willful failure to collect or pay tax 
C)  Attempt to evade or defeat tax 
D)  Attempt to interfere in the administration of Internal Revenue laws A

Question 3

Which type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less?

Accepted Answer

A)  Chapter 3 
B)  Chapter 5 
C)  Chapter 7 
D)  Chapter 11 
E)  Chapter 13 
A)  Chapter 3 
B)  Chapter 5 
C)  Chapter 7 
D)  Chapter 11 
E)  Chapter 13 E

Question 4

Which of the following is NOT an example of a method to conceal assets in a bankruptcy or divorce fraud?

Accepted Answer

A)  Not reporting sales on the debtor's books but dispersing them to another entity 
B)  Damaging or hiding the books and records of the debtor 
C)  Dispersing cash received from receivables to a third party 
D)  Not disclosing interests held in other partnerships, corporations, or other assets 
E)  All of the above are ways to conceal assets 
A)  Not reporting sales on the debtor's books but dispersing them to another entity 
B)  Damaging or hiding the books and records of the debtor 
C)  Dispersing cash received from receivables to a third party 
D)  Not disclosing interests held in other partnerships, corporations, or other assets 
E)  All of the above are ways to conceal assets

Question 5

Which of the following is always involved in planned bankruptcies?

Accepted Answer

A)  Setting up a new company whose purpose is to help the perpetrator carry out the scheme 
B)  Purchasing inventory in increasing amounts on credit 
C)  Planning a bankruptcy with the creditors before a loan is made 
D)  The perpetrator skipping town when the bankruptcy is filed 
A)  Setting up a new company whose purpose is to help the perpetrator carry out the scheme 
B)  Purchasing inventory in increasing amounts on credit 
C)  Planning a bankruptcy with the creditors before a loan is made 
D)  The perpetrator skipping town when the bankruptcy is filed

Question 6

All bankruptcy petitions are subject to:

Accepted Answer

A)  federal claims court jurisdiction. 
B)  U.S. Tax Court jurisdiction. 
C)  Supreme Court jurisdiction. 
D)  U.S. District Court jurisdiction. 
A)  federal claims court jurisdiction. 
B)  U.S. Tax Court jurisdiction. 
C)  Supreme Court jurisdiction. 
D)  U.S. District Court jurisdiction.

Question 7

What is the penalty for tax fraud?

Accepted Answer

A)  It is 20% of the tax bill. 
B)  It is 25% of the tax bill. 
C)  It is 50% of the tax bill. 
D)  It is 75% of the tax bill. 
A)  It is 20% of the tax bill. 
B)  It is 25% of the tax bill. 
C)  It is 50% of the tax bill. 
D)  It is 75% of the tax bill.

Question 8

Which of the following is true concerning a Chapter 11 bankruptcy?

Accepted Answer

A)  Constitutes a complete shutdown of the organization 
B)  Requires the entity to reorganize to pay creditors 
C)  Is available only to persons 
D)  Requires debtors to repay creditors over a specified period 
A)  Constitutes a complete shutdown of the organization 
B)  Requires the entity to reorganize to pay creditors 
C)  Is available only to persons 
D)  Requires debtors to repay creditors over a specified period

Question 9

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

Accepted Answer

A)  File a bankruptcy petition 
B)  File a document in a bankruptcy proceeding 
C)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding 
D)  All of the above 
A)  File a bankruptcy petition 
B)  File a document in a bankruptcy proceeding 
C)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding 
D)  All of the above

Question 10

Which of the following describes the result of a Chapter 7 filing?

Accepted Answer

A)  A complete liquidation or shutting down of the business 
B)  Courts give debtor time to reorganize 
C)  2 years probation and/or up to 300 hours community service 
D)  Debtors make regular payments for a number of years 
A)  A complete liquidation or shutting down of the business 
B)  Courts give debtor time to reorganize 
C)  2 years probation and/or up to 300 hours community service 
D)  Debtors make regular payments for a number of years

Question 11

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were underpaid?

Accepted Answer

A)  Civil fines can be assessed. 
B)  Penalties can be levied. 
C)  The case can be referred to the IRS's Criminal Investigation Division. 
D)  Charges can be pressed in the courts. 
A)  Civil fines can be assessed. 
B)  Penalties can be levied. 
C)  The case can be referred to the IRS's Criminal Investigation Division. 
D)  Charges can be pressed in the courts.

Question 12

Which is NOT something that a fraud perpetrator conducting a bust-out is likely to do?

Accepted Answer

A)  Work to establish credibility 
B)  Contact law enforcement to strengthen their cover 
C)  Quietly buy an existing company that already has established credit or business 
D)  Take on a business name similar to a well-reputed company 
E)  A fraud perpetrator conducting a bust-out is likely to do all of the above 
A)  Work to establish credibility 
B)  Contact law enforcement to strengthen their cover 
C)  Quietly buy an existing company that already has established credit or business 
D)  Take on a business name similar to a well-reputed company 
E)  A fraud perpetrator conducting a bust-out is likely to do all of the above

Question 13

Which of the following statements correctly describes the part of an adjuster in divorce cases?

Accepted Answer

A)  Investigates allegations of fraud or misconduct by the debtor or its principals as an advocate of the other party 
B)  Investigates instances of hiding assets in a Chapter 11 filing 
C)  Investigates claims against a debtor to determine whether or not they are valid 
D)  Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtor's estate and arranging asset sales 
A)  Investigates allegations of fraud or misconduct by the debtor or its principals as an advocate of the other party 
B)  Investigates instances of hiding assets in a Chapter 11 filing 
C)  Investigates claims against a debtor to determine whether or not they are valid 
D)  Assists the trustee by performing such duties as securing business facilities and assets, locating assets of the debtor's estate and arranging asset sales

Question 14

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

Accepted Answer

A)  Chapter 3 
B)  Chapter 5 
C)  Chapter 7 
D)  Chapter 11 
E)  Chapter 13 
A)  Chapter 3 
B)  Chapter 5 
C)  Chapter 7 
D)  Chapter 11 
E)  Chapter 13

Question 15

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is INCORRECT?

Accepted Answer

A)  If the trustee wants to employ attorneys, accountants, or other professionals to represent or assist the trustee, the trustee has to get the court's approval. 
B)  All the professionals must be employed under Code section 327. 
C)  The retention of a fraud examiner or investigator in a bankruptcy proceeding is up to the discretion of the trustee. 
D)  A creditor may engage the services of a professional to investigate allegations of bankruptcy fraud independently from the court. In this case, the creditor usually compensates the professional directly. 
A)  If the trustee wants to employ attorneys, accountants, or other professionals to represent or assist the trustee, the trustee has to get the court's approval. 
B)  All the professionals must be employed under Code section 327. 
C)  The retention of a fraud examiner or investigator in a bankruptcy proceeding is up to the discretion of the trustee. 
D)  A creditor may engage the services of a professional to investigate allegations of bankruptcy fraud independently from the court. In this case, the creditor usually compensates the professional directly.

Question 16

Which title of the U.S. Code governs the bankruptcy process?

Accepted Answer

A)  Title 9 
B)  Title 11 
C)  Title 13 
D)  Title 7 
A)  Title 9 
B)  Title 11 
C)  Title 13 
D)  Title 7

Question 17

Which of the following options is true concerning the concealment of assets during or in contemplation of a bankruptcy?

Accepted Answer

A)  Often used in divorce cases 
B)  Often used in a planned bankruptcy 
C)  How a bust-out is designed 
D)  All of the above 
A)  Often used in divorce cases 
B)  Often used in a planned bankruptcy 
C)  How a bust-out is designed 
D)  All of the above

Question 18

Which of the following is often the riskiest step in the money laundering process?

Accepted Answer

A)  Integration 
B)  Layering 
C)  Placement 
D)  Transferring 
A)  Integration 
B)  Layering 
C)  Placement 
D)  Transferring

Question 19

Which of the following is an example of tax fraud?

Accepted Answer

A)  Aggressively taking advantage of legal tax minimization strategies 
B)  Paying more tax than is owed 
C)  Intentionally underpaying taxes due 
D)  Unintentionally overstating tax deductions and exemptions 
A)  Aggressively taking advantage of legal tax minimization strategies 
B)  Paying more tax than is owed 
C)  Intentionally underpaying taxes due 
D)  Unintentionally overstating tax deductions and exemptions

Question 20

Which of the following is listed as a possible indicator of a "bust-out"?

Accepted Answer

A)  Transactions are frequently made on account but are normally made in cash 
B)  The company decreases its credit purchases 
C)  Records are missing, inaccurate, or damaged 
D)  Credit references cannot be verified 
A)  Transactions are frequently made on account but are normally made in cash 
B)  The company decreases its credit purchases 
C)  Records are missing, inaccurate, or damaged 
D)  Credit references cannot be verified

Which of the following is NOT listed as a duty of the trustee in a Chapter 7 bankruptcy?

Which of the following has a lower fine dollar amount limit than the others?

Which type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less?

Which of the following is NOT an example of a method to conceal assets in a bankruptcy or divorce fraud?

Which of the following is always involved in planned bankruptcies?

All bankruptcy petitions are subject to:

What is the penalty for tax fraud?

Which of the following is true concerning a Chapter 11 bankruptcy?

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

Which of the following describes the result of a Chapter 7 filing?

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were underpaid?

Which is NOT something that a fraud perpetrator conducting a bust-out is likely to do?

Which of the following statements correctly describes the part of an adjuster in divorce cases?

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is INCORRECT?

Which title of the U.S. Code governs the bankruptcy process?

Which of the following options is true concerning the concealment of assets during or in contemplation of a bankruptcy?

Which of the following is often the riskiest step in the money laundering process?

Which of the following is an example of tax fraud?

Which of the following is listed as a possible indicator of a "bust-out"?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 16: Bankruptcy, Divorce, and Tax Fraud

Which of the following is NOT listed as a duty of the trustee in a Chapter 7 bankruptcy?

Which of the following has a lower fine dollar amount limit than the others?

Which type of bankruptcy is a reorganization that can be used by individuals who meet certain requirements, such as having regular income and debts of $1 million or less?

Which of the following is NOT an example of a method to conceal assets in a bankruptcy or divorce fraud?

Which of the following is always involved in planned bankruptcies?

All bankruptcy petitions are subject to:

What is the penalty for tax fraud?

Which of the following is true concerning a Chapter 11 bankruptcy?

The Bankruptcy Fraud section of the Bankruptcy Code, as it relates to criminal fraud, makes it a crime to do which of the following in executing or concealing a fraud scheme?

Which of the following describes the result of a Chapter 7 filing?

Which of the following is NOT an option for the IRS tax compliance auditor when it is determined that taxes were underpaid?

Which is NOT something that a fraud perpetrator conducting a bust-out is likely to do?

Which of the following statements correctly describes the part of an adjuster in divorce cases?

Which is the type of bankruptcy that allows large companies to reorganize themselves and pay off debt in the future?

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is INCORRECT?

Which title of the U.S. Code governs the bankruptcy process?

Which of the following options is true concerning the concealment of assets during or in contemplation of a bankruptcy?

Which of the following is often the riskiest step in the money laundering process?

Which of the following is an example of tax fraud?

Which of the following is listed as a possible indicator of a "bust-out"?

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Consumer Fraud

E-Commerce Fraud

Legal Follow-Up

Filters