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
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 .
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