Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Who has the first claim to a business's assets if the company goes out of business?

Customers

Shareholders

Creditors

Employees

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Verified step by step guidance

Understand the concept of asset claims in the event of a business liquidation. When a company goes out of business, its assets are distributed based on a priority hierarchy established by law.

Learn that creditors have the first claim to a business's assets. Creditors include entities or individuals to whom the company owes money, such as banks, suppliers, or bondholders.

Recognize that shareholders, as owners of the company, are last in line to receive any remaining assets after all debts and obligations to creditors have been settled.

Understand that employees may have claims for unpaid wages or benefits, but these claims are typically subordinate to secured creditors and other priority claims.

Note that customers generally do not have a claim to a business's assets unless they have prepaid for goods or services that were not delivered, in which case they may be considered unsecured creditors.