When a company is forced into liquidation,owners are most likely to incur a loss when selling:
A)accounts receivable.
B)inventory.
C)marketable securities.
D)real estate.

Question

Quizplus · Accepted Answer

When a company is forced into liquidation, owners are most likely to incur a loss when selling inventory. This is because inventory is often sold at a discount during liquidation sales, and it is also subject to obsolescence and spoilage. Selling accounts receivable or marketable securities may help provide some cash flow to repay creditors, but they are not likely to result in a significant loss for owners. Real estate may actually appreciate in value over time, so it may not necessarily result in a loss for owners either.

When a Company Is Forced into Liquidation,owners Are Most Likely