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If you acquire assets of a company in a sale do you have to pay their vendors what is owed?
Wiki User
∙ 14y ago
Has the company declared bankruptcy? If so, what kind of bankruptcy? Does the company still exist or is it being liquidated entirely? What kind of agreement exists with the vendors? Are you buying the company, or just its assets? It can work either way, depending upon the circumstances.
Wiki User
∙ 14y ago
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What is the report that shows the money owed to vendors called?
An invoice would show you how much money is owed to vendors. It is essentially a bill or request for payment with updated totals and balances.
Can the IRS take money owed from a savings account?
Typically they can seize liquid assets if there are taxes owed.
What is the difference between outstanding assets and outstanding liabilities?
Outstanding assets are assets that are owed to an individual or business. Outstanding liabilities are debts that ill be incurred in the future.
What are the accounts payableS on the trial balance?
Accounts payable is a short-term liability representing cash owed to vendors. When a company is invoiced by a vendor, accounts payable is increased. When payment is rendered, the accounts payable balance decreases.
Which group of accounts is comprised of only assets?
The group of accounts that is comprised of only assets are prepaid expenses. Money can be owed on such things as buildings and other equipment.
What is the report that shows the money owed to vendors?
An invoice would show you how much money is owed to vendors. It is essentially a bill or request for payment with updated totals and balances.
What is the report that shows the money owed to vendors called?
An invoice would show you how much money is owed to vendors. It is essentially a bill or request for payment with updated totals and balances.
Can the IRS take money owed from a savings account?
Typically they can seize liquid assets if there are taxes owed.
Do providers have to repay company that goes into bankruptcy?
I am not an attorney. But my thought is, yes of course. You still have a debt and you made an arrangement to pay it back. The company still has assets in the form of outstanding debt, and these assets will be used to pay the company's own debt. If I were one of the company debtors, you can be sure I'd be expecting people to pay the company what is rightfully owed. Again, I am not an attorney.
What is the difference between outstanding assets and outstanding liabilities?
Outstanding assets are assets that are owed to an individual or business. Outstanding liabilities are debts that ill be incurred in the future.
Can a business that is closed still try and collect money owed?
Usually when a business closes it still has some assets, including accounts receivable (i.e.: money which it is owed), and those assets will be acquired by somebody. So the business that is closed isn't collecting money owed, but those debts can still be collected by someone.
What happens to shares when company is in administration?
I'm presuming by administartion you mean in Bankrutpcy of some type, probably C-11 or C-7 in the US. Although the answer is basically the same everyplace. Stock in a company is equity - meaning ownership. Compared to creditors who simply are owed by the company. Stockholders are NOT creditors...the company "owes" them nothing...as owners they had the right to share in profits of the company - botht the earnings and the possible appreciation in their ownership. Debt does not. It only has the right to get paid what it is owed. Hence, a company in bankruptcy. recievorship, administration - whatever one wants to call it...is there because it's liabilities (it's debts) are more than it's assets. (Or maybe it has plenty of assets, but if they were used to pay debts, it could no longer operate). Hence, when you own that company if you will - you owe a net liability - nothing of value to you...the stock is normally trading, or valued as such..for pennies. The BK or process may allow the company to escape paying some debts and such, in order to continue operating...but normally, in exchange for not getting paid what they are owed, those creditors (frequently banks/lenders rather than the trade vendors), agree to take the stock of the company and hope to revivie it, sell it and recover their loss. So the shares of a BK company are almost always worthless, are frequently eliminated in exchange for discharge of debt (sold for the debt), with a new reorganized company taking it's place, or if that can't be achieved....the assets of the Company are sold and IF (thats a big if), there is more money realized on the sale than is owed, the excess would be distributed to the stockholders as a liquidating distribution.
What is the report that shows the money owed to vendor called?
An invoice would show you how much money is owed to vendors. It is essentially a bill or request for payment with updated totals and balances.
What are 2 benefits of converting from a partnership to private limited company?
The formation of a limited company makes the company an entity in its own right with its own liabilities. If you are a partnership and the company goes bust you and your partner are personally liable for any monies owed. If the company is Limited then it is limited to paying the investment into the company and its assets to its creditors should the company fail.
What are the accounts payableS on the trial balance?
Accounts payable is a short-term liability representing cash owed to vendors. When a company is invoiced by a vendor, accounts payable is increased. When payment is rendered, the accounts payable balance decreases.
Who to contact about money owed you from your pension money that was owed you?
The company that owes you the money.
What is the creditors?
money owed by the company
