Question 1

The duties of the court-appointed trustee in a chapter 11 case include all of the following except:

Accepted Answer

A)  Investigate the acts, assets, liabilities, and financial condition of the debtor 
B)  Examine proofs of claims 
C)  Collect and liquidate the property of the debtor's estate 
D)  All of the above are duties of a court-appointed trustee 
A)  Investigate the acts, assets, liabilities, and financial condition of the debtor 
B)  Examine proofs of claims 
C)  Collect and liquidate the property of the debtor's estate 
D)  All of the above are duties of a court-appointed trustee

Question 2

Which of the following statements is true concerning divorce cases?

Accepted Answer

A)  Bankruptcy laws and statutes are much simpler than divorce laws and statutes 
B)  Divorce fraud never involves hiding or transferring assets 
C)  Most divorce cases are civil cases, with no criminal charges filed 
D)  It is illegal for divorce attorneys to hire investigators to help them find hidden assets 
A)  Bankruptcy laws and statutes are much simpler than divorce laws and statutes 
B)  Divorce fraud never involves hiding or transferring assets 
C)  Most divorce cases are civil cases, with no criminal charges filed 
D)  It is illegal for divorce attorneys to hire investigators to help them find hidden assets

Question 3

Which of the following is not a category into which bankruptcy and divorce frauds can be placed?

Accepted Answer

A)  Fraud causes the bankruptcy or divorce 
B)  Bankruptcy or divorce is used to perpetuate the fraud 
C)  Bankruptcy or divorce is used to conceal fraud 
D)  Bankruptcy or divorce is used to cash out of the fraud 
A)  Fraud causes the bankruptcy or divorce 
B)  Bankruptcy or divorce is used to perpetuate the fraud 
C)  Bankruptcy or divorce is used to conceal fraud 
D)  Bankruptcy or divorce is used to cash out of the fraud

Question 4

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Accepted Answer

A)  Increases in operating losses that are not explained by economic factors 
B)  The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease 
C)  A sudden change in management is made without public notice 
D)  The company sells goods at large discounts 
A)  Increases in operating losses that are not explained by economic factors 
B)  The size of orders placed on credit and the credit balances with suppliers suddenly and dramatically decrease 
C)  A sudden change in management is made without public notice 
D)  The company sells goods at large discounts

Question 5

Bankruptcy and divorce can be:

Accepted Answer

A)  Criminal matters 
B)  Civil matters 
C)  All of the above 
D)  None of the above 
A)  Criminal matters 
B)  Civil matters 
C)  All of the above 
D)  None of the above

Question 6

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is NOT correct?

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 must be approved by the court 
D)  U.S. trustees require the services of professionals to be categorized and have developed broad categories of service. 
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 must be approved by the court 
D)  U.S. trustees require the services of professionals to be categorized and have developed broad categories of service.

Question 7

Planned bankruptcies or "bust-outs" always involve:

Accepted Answer

A)  Setting up a new company whose purpose is to help the perpetrator carry out the scheme 
B)  Intentionally obtaining loans or purchasing inventory on credit and concealing or running away with the proceeds before the creditors are paid 
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)  Intentionally obtaining loans or purchasing inventory on credit and concealing or running away with the proceeds before the creditors are paid 
C)  Planning a bankruptcy with the creditors before a loan is made 
D)  The perpetrator skipping town when the bankruptcy is filed

Question 8

Bankruptcy and divorce parties can sue fraud investigators if

Accepted Answer

A)  The fraud investigator makes a statement supported by fact 
B)  The fraud investigator makes a statement based on opinion 
C)  The fraud investigator makes a statement about the opposing side 
D)  The fraud investigator makes a statement about the court process 
A)  The fraud investigator makes a statement supported by fact 
B)  The fraud investigator makes a statement based on opinion 
C)  The fraud investigator makes a statement about the opposing side 
D)  The fraud investigator makes a statement about the court process

Question 9

Jim Salazar is the majority shareholder of XYZ Co. XYZ Co. filed for Chapter 11 Bankruptcy on January 1, 2008. Which of the following would be considered a fraudulent transfer?

Accepted Answer

A)  Transfer of land to Jim's sister Alice on July 1, 2006 with the intent to place the land beyond the reach of creditors. 
B)  Sale of inventory at regular price to a new customer on February 15, 2008. 
C)  Transfer of fixed assets to Jim's brother John on December 15, 2007 with the intent to place the fixed assets beyond the reach of creditors. 
D)  Transfer of inventory to a subsidiary for less than fair value on August 1, 2006. 
E)  Two of the above 
A)  Transfer of land to Jim's sister Alice on July 1, 2006 with the intent to place the land beyond the reach of creditors. 
B)  Sale of inventory at regular price to a new customer on February 15, 2008. 
C)  Transfer of fixed assets to Jim's brother John on December 15, 2007 with the intent to place the fixed assets beyond the reach of creditors. 
D)  Transfer of inventory to a subsidiary for less than fair value on August 1, 2006. 
E)  Two of the above

Question 10

All of the following are examples of ways to conceal assets in a bankruptcy or divorce fraud except:

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 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 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 11

Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

Accepted Answer

A)  To pay for the all of the legal fees in filing a chapter 7, 11, or 13 bankruptcy or to pay the legal fees of a divorce 
B)  To protect the assets of the party filing bankruptcy so that no further losses are realized 
C)  To settle the debts of the debtor or divorce partner of which the Bankruptcy or Divorce Court has control 
D)  To hold only the physical assets of the divorce partner or debtor for the period of the bankruptcy or divorce 
A)  To pay for the all of the legal fees in filing a chapter 7, 11, or 13 bankruptcy or to pay the legal fees of a divorce 
B)  To protect the assets of the party filing bankruptcy so that no further losses are realized 
C)  To settle the debts of the debtor or divorce partner of which the Bankruptcy or Divorce Court has control 
D)  To hold only the physical assets of the divorce partner or debtor for the period of the bankruptcy or divorce

Question 12

Which of the following courts has jurisdiction to oversee the receipt of bankruptcy petitions?

Accepted Answer

A)  U.S. tax court 
B)  U.S. district court 
C)  U.S. supreme court 
D)  Bankruptcy court 
A)  U.S. tax court 
B)  U.S. district court 
C)  U.S. supreme court 
D)  Bankruptcy court

Question 13

Government statistics estimate that losses to creditors from bust-outs amount to:

Accepted Answer

A)  $100,000/day 
B)  $1 billion/year 
C)  $1 million/ year 
D)  $10,000/day 
A)  $100,000/day 
B)  $1 billion/year 
C)  $1 million/ year 
D)  $10,000/day

Question 14

Bankruptcy fraud makes it a crime to do any of the following to execute or conceal a fraud scheme except:

Accepted Answer

A)  File a bankruptcy petition 
B)  Make a false account in a bankruptcy case 
C)  File a document in a bankruptcy proceeding 
D)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding, either before or after the bankruptcy petition is filed. 
A)  File a bankruptcy petition 
B)  Make a false account in a bankruptcy case 
C)  File a document in a bankruptcy proceeding 
D)  Make a false or fraudulent representation, claim, or promise with respect to a bankruptcy proceeding, either before or after the bankruptcy petition is filed.

Question 15

Bankruptcy judges perform all of the following functions except

Accepted Answer

A)  Approve reorganization plans 
B)  Conduct hearings and trials to resolve disputes 
C)  Appoint fraud examination firms to conduct audits 
D)  Award professional fees 
E)  Bankruptcy judges perform all of the above functions 
A)  Approve reorganization plans 
B)  Conduct hearings and trials to resolve disputes 
C)  Appoint fraud examination firms to conduct audits 
D)  Award professional fees 
E)  Bankruptcy judges perform all of the above functions

Question 16

Which of the following is true of bankruptcy/divorce fraud?

Accepted Answer

A)  It involves only criminal proceedings 
B)  It is growing at an alarming rate 
C)  The main motivation is to keep assets from being taken 
D)  A and C 
E)  B and C
F) All of the above 
A)  It involves only criminal proceedings 
B)  It is growing at an alarming rate 
C)  The main motivation is to keep assets from being taken 
D)  A and C 
E)  B and C
F) All of the above

Question 17

The Office of U.S. Trustee is an agency in which of the following departments?

Accepted Answer

A)  Homeland Defense 
B)  Department of Justice 
C)  Department of the Treasury 
D)  Department of Agriculture 
A)  Homeland Defense 
B)  Department of Justice 
C)  Department of the Treasury 
D)  Department of Agriculture

The duties of the court-appointed trustee in a chapter 11 case include all of the following except:

Which of the following statements is true concerning divorce cases?

Which of the following is not a category into which bankruptcy and divorce frauds can be placed?

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Bankruptcy and divorce can be:

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is NOT correct?

Planned bankruptcies or "bust-outs" always involve:

Bankruptcy and divorce parties can sue fraud investigators if

Jim Salazar is the majority shareholder of XYZ Co. XYZ Co. filed for Chapter 11 Bankruptcy on January 1, 2008. Which of the following would be considered a fraudulent transfer?

All of the following are examples of ways to conceal assets in a bankruptcy or divorce fraud except:

Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

Which of the following courts has jurisdiction to oversee the receipt of bankruptcy petitions?

Government statistics estimate that losses to creditors from bust-outs amount to:

Bankruptcy fraud makes it a crime to do any of the following to execute or conceal a fraud scheme except:

Bankruptcy judges perform all of the following functions except

Which of the following is true of bankruptcy/divorce fraud?

The Office of U.S. Trustee is an agency in which of the following departments?

The Nature of Fraud

Why People Commit Fraud

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

Fraud in E-Commerce

Legal Follow-Up

Filters

Exam 16: Bankruptcy, Divorce, and Tax Fraud

The duties of the court-appointed trustee in a chapter 11 case include all of the following except:

Which of the following statements is true concerning divorce cases?

Which of the following is not a category into which bankruptcy and divorce frauds can be placed?

Which of the following is a possible indicator of concealment in a bankruptcy or divorce fraud?

Bankruptcy and divorce can be:

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is NOT correct?

Planned bankruptcies or "bust-outs" always involve:

Bankruptcy and divorce parties can sue fraud investigators if

Jim Salazar is the majority shareholder of XYZ Co. XYZ Co. filed for Chapter 11 Bankruptcy on January 1, 2008. Which of the following would be considered a fraudulent transfer?

All of the following are examples of ways to conceal assets in a bankruptcy or divorce fraud except:

Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

Which of the following courts has jurisdiction to oversee the receipt of bankruptcy petitions?

Government statistics estimate that losses to creditors from bust-outs amount to:

Bankruptcy fraud makes it a crime to do any of the following to execute or conceal a fraud scheme except:

Bankruptcy judges perform all of the following functions except

Which of the following is true of bankruptcy/divorce fraud?

The Office of U.S. Trustee is an agency in which of the following departments?

The Nature of Fraud

Why People Commit Fraud

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

Fraud in E-Commerce

Legal Follow-Up

Filters