Liquidating dividend accounting entry

12-Sep-2020 18:51

Creditors usually expect full payment from the business, unless the forced closing of a company comes from a bankruptcy or other significant issue.

A company with shareholders will pay investors last, if any funds remain.

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Basically, the first step a company must make is to take inventory and sell all assets when closing its doors; but before doing that, try to collect all outstanding accounts receivable since they could be difficult to get later.These individuals rarely receive any money when a company closes its doors.

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