Asked by Maria del Mar Ribas on May 27, 2024
Verified
The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.
Rights Of Creditors
Legal entitlements of creditors to receive payment from a debtor or claim on the assets of a debtor in case of default.
Rights Of Owners
Entitlements or privileges that come with owning equity or shares in a corporation, including voting rights, dividends, and the right to share in the assets of the company during liquidation.
- Acquire knowledge of the essential components and their interrelations in the accounting equation (Assets = Liabilities + Owner's Equity).
Verified Answer
AV
Aynara VelosoJun 01, 2024
Final Answer :
True
Explanation :
This statement is true. Creditors have a right to be paid back money they have loaned to a business, while owners have a claim to the residual profits and assets after creditors have been paid.
Learning Objectives
- Acquire knowledge of the essential components and their interrelations in the accounting equation (Assets = Liabilities + Owner's Equity).
Related questions
The Owner's Rights to the Assets Rank Ahead of the ...
Purchasing Supplies on Account Increases Liabilities and Decreases Equity
Paying an Account Payable Increases Liabilities and Decreases Assets
If Total Assets Decreased by $30,000 During a Specific Period ...
The Accounting Equation Can Be Expressed as Assets - Liabilities ...