Asked by Jeeva Senthilnathan on Jun 15, 2024
Verified
The owner's rights to the assets rank ahead of the creditors' rights to the assets.
Owner's Rights
The legal entitlements or claims a person has over an asset or property, reflecting one's ownership and the benefits and responsibilities that come with it.
Creditors' Rights
The legal entitlements and protections afforded to lenders or creditors to ensure repayment of debt or loans.
- Comprehend the fundamental elements and connections within the accounting equation (Assets = Liabilities + Owner's Equity).
- Understand the principles of equity, liabilities, and asset management in a business setting.
Verified Answer
RR
Randa RegesJun 17, 2024
Final Answer :
False
Explanation :
Creditors' rights to the assets of a business or individual typically rank ahead of the owner's rights in the event of bankruptcy or liquidation, ensuring creditors are paid before owners receive any remaining assets.
Learning Objectives
- Comprehend the fundamental elements and connections within the accounting equation (Assets = Liabilities + Owner's Equity).
- Understand the principles of equity, liabilities, and asset management in a business setting.
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