Question

What is the key objective of Orville company in preparing a statement of affairs after filing for bankruptcy, considering the provided information on carrying values and estimated fair values of its assets?

A) To determine the market value of assets
B) To assess the financial health of the company
C) To facilitate the liquidation process
D) To calculate potential creditor repayments

Answer 1

The key objective of Orville company in preparing a statement of affairs after filing for bankruptcy is to facilitate the liquidation process.

Step-by-step explanation:

The key objective of Orville company in preparing a statement of affairs after filing for bankruptcy, considering the provided information on carrying values and estimated fair values of its assets, is C) To facilitate the liquidation process. A statement of affairs provides a detailed snapshot of the company's assets, liabilities, and ownership interests, which helps in the orderly liquidation of assets and distribution of proceeds to creditors.