Dissolution Differs from Liquidation in That Dissolution Is

question 16

Multiple Choice

Dissolution differs from liquidation in that dissolution is:

• A) the end of the legal existence of a corporation.
• B) the end of the physical existence of a corporation.
• C) the distribution of a corporation's assets.
• D) the distribution of a corporation's liabilities.
• E) a process independent from the judicial system.

---

Definitions:

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Note Payable

An obligation in the form of a written promissory note requiring the borrower to repay the lender a specific sum of money on demand or at a predetermined date.

Interest Payable

This is the amount of interest expense that has accumulated but not yet been paid by a company.

Treasurer's Department

The treasurer's department is responsible for managing a company's financial assets, including cash flow, investments, and corporate financing.