Solved: Direct-indirect cost of bankruptcy, Accounting Basics

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Direct-indirect cost of bankruptcy

Question 1: Which of the following is not an indirect cost of bankruptcy?

Legal Fees
Delayed Liquidation
Costs to Creditors
Loss of Customers

Question 2: Which of the following is not an indirect cost of bankruptcy?

Loss of Suppliers
Fire Sales of Assets
Costs of Appraisers
Loss of Employees

Question 3: Which of the following is not a direct cost of bankruptcy?

Costs to Creditors
Investment Banking Costs
Costs of accounting experts
Legal Costs and Fees

Question 4: Which of the following industries is likely to have the lowest costs of financial distress?

Airlines
Computer Software
Biotechnology
Electric Utilities

Question 5: Which of the following industries likely to have the highest costs of financial distress?

Grocery store
Semiconductors
Real estate
Utilities

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Accounting Basics: Direct-indirect cost of bankruptcy

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Accounting Basics: Direct-indirect cost of bankruptcy

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