Equity's claim against the assets of the entity:
A) takes priority as owners.
B) is ranked before employee entitlements.
C) is equal to the value of cash reserves held in equity.
D) ranks after liabilities in terms of priority.

Question

Quizplus · Accepted Answer

Equity's claim against the assets of the entity ranks after liabilities in terms of priority. Liabilities have first priority to claims on assets in the event of liquidation or bankruptcy. Any remaining assets are then available to satisfy equity claims.

Equity's Claim Against the Assets of the Entity