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Can a creditor stop the sale of the primary asset of a company?
Wiki User
∙ 12y ago
Probably not. A creditor would have no right to direct any of the actions of a debtor (other than a by directly secured or identifed in the note interest) unless it could prove it was part of a concerted effort to hide assets or make payment of the obligation impossible.
And of course, a company regularly HAS to sell assets TO PAY OFF debts.
In fact, the cash it receives is an asset too....so it is worth no more or no less after selling an asset than before.
And paying a liability (the debt) using money (an asset) doesn't make the company worth any more or less either. Both Assets and Liabilities decrease bythe same amount....just what they are represented by (property, cash, a note, etc) change.
Wiki User
∙ 12y ago
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Is Loss on Sale of Asset a Equity account or Income Account?
Loss on sale of asset reduces the actual profit of company that's why it is a part of income statement and shown as an expense to business.
Is inventory considered an asset?
Yes merchandise inventory is asset for business which company maintain for sale purpose and to earn revenue.
When a sale is made to a customer on credit it creates an a r which is classified by your company as?
Asset
Is merchandise inventory considered an asset?
Yes merchandise inventory is asset for business which company maintain for sale purpose and to earn revenue.
When a sale is made to a customer on credit it creates an Accounts Receivable which is classified by your company as?
an asset
When an asset created by a business makes a sale on account it is termed what?
If it is the business of the company to create / manufacture the asset and sell then the asset would be the inventory.If it is not the normal business of the entity to create / manufacture then it would be classified as the sale of the asset / machine / etc. depreciation may also be applicable...
What is the legal right to receive cash from a credit sale and represents an asset of the company?
account receivable
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
What is restructured asset?
Asset restructuring is the purchase or sale of assets that are worth more than 50% of a listed of a company's total or net amount of assets
Can a judgment in Texas put a lien on home?
No. A judgment creditor can place a lien against real property but a forced sale of a homestead is not possible. Texas is one of the few states that has a constitutional statute that directly forbids the forced sale of a primary residence for creditor debt. No, Texas has a specific statute which directly forbids the forced sale of a homestead for creditor judgments.
What is the net realization value?
Net realization value is the price a company can get on sale or dissposal of any asset from balance sheet.
What are the terms depreciable value salvage value and estimated life mean?
Depreciable Value: It is the value of asset up to which any asset can be depreciated. Salvage Value: It is the value which a company can get on sale of fully depreciated asset. Estimated useful Life: It is that life of an assets which a company determine at the time of purchase for which an asset can be utilized in business to generate revenue.
