Accounting questions grade 11 help me please?

Question

(1) Give two reasons why creditors have claims against the assets of a business?
(2) How can you quickly find out who has a claim against the assets of a business?
(3) Who has first claim against the assets of a business?

Thanks
(4) Who benefits from gains made in closing a business?
(5) Who primarily suffernfrom losses incurred in closing down a business?

Answer 1

do your own homework.

Answer 2

1) The creditors loaned money to the business, and the business gave claims against the assets as collateral.
2) Get a credit report for the business.
3) Whoever was the first to get the asset as collateral.
4) The owners of the business and the taxing entities.
5)The business owners, the creditors, the economy.

Answer 3

1.) because they have money invested and own, in essence, the company and its assets.
2.) Business Administration or where they get their business licenses.
3.) Creditors. They have to be paid first.
4.) I believe the stockholders, but it depends on the business (ex: partnership, sole owner, etc)
5.) The guy who had the idea and started the business. His idea didn't work and cost people money.,

Answer 4

1) Creditors have claims because the business borrows goods or services from the creditor. Reason #2 (isnt reason #1 good enough)
2) Most of the time, a creditor or vendor sends you a bill.
3) Not sure
4) The broker selling the business
5) The creditor or vendor because they usually do not get all their $$ back.

Answer 5

1) security
2) financial stmts
3) banks
4) shareholders
5) shareholders

*do your own homework*

Answer 6

lool .. i give you credit, I never thought of this way to have my home work done for me