When a Corporation Is Liquidated,the First Group of Persons to Be

question 38

True/False

When a corporation is liquidated,the first group of persons to be paid are the preferred creditors.

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Definitions:

Journalize

The process of recording transactions in the general journal using the double-entry bookkeeping system.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Uncollectible Receivables

Amounts owed to a company from customers that are considered unlikely to be collected.

Credit Balance

The amount appearing on the credit side of an account, indicating the total credits exceed the total debits.