True or False

1. Free assets are available to secured and unsecured creditors.
2. Statement of affairs is a statement of a financial condition of an inaolvent corporation as of a given date presenting the assets and liabilities from a liquidation viewpoint.
3. Accompanying a statement of affairs is a statement of realization and liquidation that shows the gains or losses on realization of assets and a lists of additional cost associated with the liquidation.

4.Which of the following observations covering claims by general unsecured creditors is NOT true?

a. They are paid only after secured creditors and unsecured creditors with priority are satisfied to the extent of any legal limits.

b. They often receive less than the full amount of their claim.

c. They are entitled to preference payments at the discretion of debtor's management.

d. The amounts paid to them are usually stated as a percentage of the total claim.