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

Which of the following types of liens is automatically superior to any other lien?

Mortgage lien

Judgment lien

Property tax lien

Mechanic's lien

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Verified step by step guidance

Understand the concept of a lien: A lien is a legal claim or right against a property that allows the holder to secure payment for a debt or obligation. Different types of liens have varying levels of priority.

Learn about property tax liens: Property tax liens are imposed by the government when property taxes are unpaid. These liens are automatically superior to other types of liens because they are tied to the government's authority to collect taxes.

Compare the priority of liens: Mortgage liens, judgment liens, and mechanic's liens are subordinate to property tax liens. This means that if a property is sold to satisfy debts, the property tax lien will be paid first.

Understand why property tax liens are superior: The government prioritizes property tax collection to fund public services. This legal precedence ensures that property tax liens take priority over other claims.

Apply this knowledge to the problem: Recognize that among the options provided (mortgage lien, judgment lien, property tax lien, mechanic's lien), the property tax lien is automatically superior due to its legal priority.