This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When a business is declared bankrupt, what steps are taken to pay the business' ... (Read 95 times)

TFauchery

  • Hero Member
  • *****
  • Posts: 500
on: Jun 24, 2018
When a business is declared bankrupt, what steps are taken to pay the business' debts?

Question 2

What are the three categories typically found on a balance sheet?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mmj22343

  • Sr. Member
  • ****
  • Posts: 297
Reply #1 on: Jun 24, 2018
Answer to Question 1

The court appoints a trustee to sell all the assets. The proceeds from the assets first go to pay the legal costs of the bankruptcy. They also go to any claims that the law says must be paid first and to any secured creditors, such as a bank holding a mortgage. Any money left over goes to all other creditors in proportion to their claims.

Answer to Question 2

assets, liabilities, equity


TFauchery

  • Member
  • Posts: 500
Reply 2 on: Jun 24, 2018
Great answer, keep it coming :)

abro1885

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Comparison of the steps of two viral reproductive cycles. Comparison of the steps of two viral reproductive cycles.
Entrepreneurship: Starting and Operating a Small Business (3rd Edition) Entrepreneurship: Starting and Operating a Small Business (3rd Edition)
The Olestra study followed a sequence of steps The Olestra study followed a sequence of steps
Steps in the process of translation (Part 2) Steps in the process of translation (Part 2)
Business mathematics Business mathematics
Business Math Question Business Math Question
Video: Red Blood Cells - Erythropoietin (EPO)

For a complete list of videos, visit our video library