can anyone plz ellaborate on going concern concepts?



0
wat is liquidation?

4 Answer(s)


0

To LIQUIDATE means :

1. To convert to cash.

2. To sell all of a company's assets, pay outstanding debts, and distribute the remainder to shareholders, and then go out of business.

3. A broker's sale of his/her customer's securities after the customer failed to meet a margin call

LIQUIDATION therefore is the process of converting property or investments into cash.

If you need further explanation let me know.


0

1. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders.

2. Any transaction that offsets or closes out a long or short position.

Creditors liquidate assets to try and get as much of the money owed to them as possible. They have first priority to whatever is sold off. After creditors are paid, the shareholders get whatever is left with preferred shareholders having preference over common shareholders.

0

In law and business, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.

0

Going concern is a basic underlying assumption in accounting. The assumption is that a company or other entity will be able to continue operating for a period of time that is sufficient to carry out its commitments, obligations, objectives, and so on.