Question 1

Which bankruptcy participant administers a bankruptcy estate?

Accepted Answer

A) Examiner 
B) Trustee 
C) Adjuster 
D) Creditor 
A) Examiner 
B) Trustee 
C) Adjuster 
D) Creditor B

Question 2

"Bust-out" refers to:

Accepted Answer

A) A planned bankruptcy 
B) Jailbreak planned by fraud perpetrators 
C) Skipping out on bail 
D) Fraud prevention program for convicted fraudsters 
A) A planned bankruptcy 
B) Jailbreak planned by fraud perpetrators 
C) Skipping out on bail 
D) Fraud prevention program for convicted fraudsters A

Question 3

In dealing with divorce and bankruptcy,when books and records of the debtor/marital partner have been destroyed or are hard to locate,it generally means:

Accepted Answer

A) Fraud has caused the bankruptcy or divorce 
B) The bankruptcy or divorce is used to perpetrate the fraud 
C) The bankruptcy or divorce is used to conceal the fraud 
D) None of the above 
A) Fraud has caused the bankruptcy or divorce 
B) The bankruptcy or divorce is used to perpetrate the fraud 
C) The bankruptcy or divorce is used to conceal the fraud 
D) None of the above C

Question 4

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

Question 5

Which of the following may indicate concealment of assets during a bankruptcy?

Accepted Answer

A) Large transfers of assets to related parties or individuals 
B) Rapid reduction in assets 
C) Missing,inaccurate,or damaged documents 
D) All of the above 
A) Large transfers of assets to related parties or individuals 
B) Rapid reduction in assets 
C) Missing,inaccurate,or damaged documents 
D) All of the above

Question 6

One 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.This type of bankruptcy is defined in ____ of the Bankruptcy Code.

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 7

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 8

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 9

When a bankrupt company's only listed address and phone number is a post office box and an answering service,we may see this as a flag of what type of fraud?

Accepted Answer

A) Illegal concealment of assets 
B) Planned bankruptcy fraud 
C) Fraudulent transfers 
D) None of the above 
A) Illegal concealment of assets 
B) Planned bankruptcy fraud 
C) Fraudulent transfers 
D) None of the above

Question 10

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 11

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 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 12

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

Accepted Answer

A) The debtor knew the debts could not be repaid at maturity 
B) The debtor becomes insolvent as a result of the transfer 
C) The debtor misstates the value of the transfer 
D) The debtor's capital remaining after the transfer is unreasonably small 
A) The debtor knew the debts could not be repaid at maturity 
B) The debtor becomes insolvent as a result of the transfer 
C) The debtor misstates the value of the transfer 
D) The debtor's capital remaining after the transfer is unreasonably small

Question 13

Which of the following is the strongest indication of a bust-out?

Accepted Answer

A) The company has one permanent address in downtown San Jose. 
B) Management suddenly changes without public notice. 
C) Inventory suddenly and dramatically increases. 
D) One of the credit references is Chase Manhattan. 
A) The company has one permanent address in downtown San Jose. 
B) Management suddenly changes without public notice. 
C) Inventory suddenly and dramatically increases. 
D) One of the credit references is Chase Manhattan.

Question 14

Which of the following is not a participant in the bankruptcy process?

Accepted Answer

A) U.S.Trustee 
B) Bankruptcy court 
C) Creditors 
D) All of the above are participants in the bankruptcy process 
A) U.S.Trustee 
B) Bankruptcy court 
C) Creditors 
D) All of the above are participants in the bankruptcy process

Question 15

An examiner investigates and reports the results of a bankruptcy fraud investigation to the court.However,unless court appointed,his duties cannot include any of the following except:

Accepted Answer

A) Operate a business 
B) Subpoena records 
C) Make business decisions 
D) Propose reorganization plans 
E) An examiner is not allowed to perform any of the above 
A) Operate a business 
B) Subpoena records 
C) Make business decisions 
D) Propose reorganization plans 
E) An examiner is not allowed to perform any of the above

Question 16

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 17

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 18

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 19

Who holds a valid claim against someone filing a chapter 11 bankruptcy?

Accepted Answer

A) Examiner 
B) Debtor 
C) Creditor 
D) Adjuster 
A) Examiner 
B) Debtor 
C) Creditor 
D) Adjuster

Question 20

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

Which bankruptcy participant administers a bankruptcy estate?

"Bust-out" refers to:

In dealing with divorce and bankruptcy,when books and records of the debtor/marital partner have been destroyed or are hard to locate,it generally means:

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

Which of the following may indicate concealment of assets during a bankruptcy?

One 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.This type of bankruptcy is defined in ____ of the Bankruptcy Code.

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

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

When a bankrupt company's only listed address and phone number is a post office box and an answering service,we may see this as a flag of what type of fraud?

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?

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

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

Which of the following is the strongest indication of a bust-out?

Which of the following is not a participant in the bankruptcy process?

An examiner investigates and reports the results of a bankruptcy fraud investigation to the court.However,unless court appointed,his duties cannot include any of the following except:

Which of the following statements is true concerning divorce cases?

Planned bankruptcies or "bust-outs" always involve:

Bankruptcy judges perform all of the following functions except:

Who holds a valid claim against someone filing a chapter 11 bankruptcy?

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

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

Which bankruptcy participant administers a bankruptcy estate?

"Bust-out" refers to:

In dealing with divorce and bankruptcy,when books and records of the debtor/marital partner have been destroyed or are hard to locate,it generally means:

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

Which of the following may indicate concealment of assets during a bankruptcy?

One 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.This type of bankruptcy is defined in ____ of the Bankruptcy Code.

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

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

When a bankrupt company's only listed address and phone number is a post office box and an answering service,we may see this as a flag of what type of fraud?

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?

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

Which of the following is NOT an element of a fraudulent transfer that is made for less than a reasonably equivalent value?

Which of the following is the strongest indication of a bust-out?

Which of the following is not a participant in the bankruptcy process?

An examiner investigates and reports the results of a bankruptcy fraud investigation to the court.However,unless court appointed,his duties cannot include any of the following except:

Which of the following statements is true concerning divorce cases?

Planned bankruptcies or "bust-outs" always involve:

Bankruptcy judges perform all of the following functions except:

Who holds a valid claim against someone filing a chapter 11 bankruptcy?

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

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