Which of the Following Is True Regarding Liquidation

question 58

Multiple Choice

Which of the following is true regarding liquidation?

• A) Liquidation is another name for dissolution.
• B) It is the process by which the board converts the corporation's assets into cash and distributes them among the corporation's creditors and shareholders.
• C) It begins immediately prior to dissolution.
• D) It is the process by which the board provides notice to the secretary of state that the corporation will no longer remain in existence.
• E) Liquidation duties fall upon officers of the corporation.

---

Definitions:

Purchases

Purchases refer to the acquisition of goods or services by a company for use in its operations or for resale to customers.

Unearned Rent

Income received by a landlord for rent that has not yet been earned because the period of occupancy has not yet occurred.

Liability

A financial obligation or debt that an individual or company owes to another party.

Asset

An economic resource owned or controlled by an entity that is expected to provide future economic benefits.