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tatyana61 [14]
3 years ago
10

A company is about to be closed down as it does not possess enough funds to pay for its debts. The business, therefore, places a

low value on its inventory. Which concept is the business complying with?
Business
1 answer:
evablogger [386]3 years ago
7 0

Answer:

The business is complying with the Liquidation concept.

Explanation:

Liquidation in most cases is a concept in business that happens when a company sells off its inventory lower than their cost price because the company is about to be closed down.

It is usually to generate cash within a short period of time to pay off debts or creditors.

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4 years ago
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goldfiish [28.3K]

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Anestetic [448]

Answer:

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