Question

ABC Corp. is a financial disaster when the business fails to and assets are being divided...

ABC Corp. is a financial disaster when the business fails to and assets are being divided who receives first for preference please explain each answer

a)stockholders

b)long-term creditors

C)customers

D)employees

Homework Answers

Answer #1

Option C is the correct answer . Customerd are the outsiders of the company. Firstly company will set off the customer liability after that they will setoff any other liability.

Option A is the incorrect option : stockholders (equity) are the owner of the company . After setting off all the liabilities , surplus is shared by the shareholders.

Option B Long term creditors are the liabilities of the company . After setting off customer liability company will setoff the creditor liabilities.

Option D emploees are the backbone of the company . After paying customers , creditors . Company will make payment to the employees .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When the business fails and assets are being divided, who receives first preference? Please explain?
When the business fails and assets are being divided, who receives first preference? Please explain?
6. Some commentators argue that when a financial firm is rescued by the government in the...
6. Some commentators argue that when a financial firm is rescued by the government in the midst of a financial crisis, the firm’s equity holders should be wiped out, but the firm’s creditors should be protected. Does this solve the moral hazard problem? Why or why not? What implications could this have for the key factors in the long term stability of the economy, and thus business and industry? *Refer Macroeconomic by Gregory Mankiw, 10th edition; please explain the complete...
The following data were taken from the financial statements of Gates Inc. for the current fiscal...
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,154,400 Liabilities: Current liabilities $177,000 Note payable, 6%, due in 15 years 888,000 Total liabilities $1,065,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,597,500 Common stock, $10 par (no change during year) 1,597,500 Retained earnings: Balance, beginning of year $1,704,000 Net income 633,000 $2,337,000 Preferred dividends $63,900 Common dividends 143,100 207,000 Balance, end of...
In its closing financial statements for its first year in business, ABC Enterprises, had cash of...
In its closing financial statements for its first year in business, ABC Enterprises, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $160, other operating expenses of $200, interest expense of $160, taxes of $312, addition to retained earnings of...
Question 2 ABC is a single business organization with a product structure. In 2017, ABC’s average...
Question 2 ABC is a single business organization with a product structure. In 2017, ABC’s average stock price was $100 per share and it had 10 million shares of outstanding stock. ABC had net income of $100 million in 2017; projections show that net income will remain stagnant at approximately $100 million during 2018. ABC has never paid dividends to its stockholders but had excess cash of $70M at the end of 2017. ABC had a current ratio of 8...
Which financial statement will each be found on? a. Current Assets b. Property, plant & equipment...
Which financial statement will each be found on? a. Current Assets b. Property, plant & equipment c. Current liabilities d. Long-term liabilities e. Stockholder's equity f. Balance sheet 1) Cash paid employees for salaries and wages 2) Cash collected from sales customers 3)Bonds Payable 4) Cash 5) Common Stock 6) Equipment 7) Prepaid Insurance 8) Inventory 9) Prepaid Rent 10) Retained Earnings 11) Salaries & Wages Expense 12) Sales
3. The following are transactions related to formation of ABC Services and its first month of...
3. The following are transactions related to formation of ABC Services and its first month of operations. Record each transaction in the appropriate columns on the following, showing the amounts involving and indicate how each account is affected (+ or -). After the transactions have been recorded, calculate the total assets, liabilities, and stockholders’ equity at the end of the month and calculate the amount of net income for the month. a. The firm was organized and the initial stockholders...
FACT PATTERN Alfred, Beth, and Charles orally agreed to start ABC Computers (“ABC”), a business to...
FACT PATTERN Alfred, Beth, and Charles orally agreed to start ABC Computers (“ABC”), a business to manufacture and sell computers. Alfred contributed $100,000 to ABC, stating to Beth and Charles that he wanted to limit his liability to that amount. Beth, who had technical expertise, contributed $50,000 to ABC. Charles contributed no money to ABC but agreed to act as salesperson. Alfred, Beth, and Charles agreed that Beth would be responsible for designing the computers, and that Charles alone would...
Ross’s Lipstick Company’s long-term debt agreements make certain demands on the business. For example, Ross may...
Ross’s Lipstick Company’s long-term debt agreements make certain demands on the business. For example, Ross may not purchase treasury stock in excess of the balance of retained earnings. Also, long-term debt may not exceed stockholders’ equity, and the current ratio may not fall below 1.50. If Ross fails to meet any of these requirements, the company’s lenders have the authority to take over management of the company. Changes in consumer demand have made it hard for Ross to attract customers...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2. Question not attempted. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Retained earnings, January 1 $3,716,000.00 $3,266,000.00 3 Net income 610,000.00 560,000.00 4 Total $4,326,000.00 $3,826,000.00 5 Dividends: 6 On preferred stock $10,000.00 $10,000.00 7 On common stock 100,000.00 100,000.00 8 Total dividends $110,000.00 $110,000.00 9...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT