Claims on assets would be most relevant in a situation where a company is: (Choose the correct answer)
a going concern
making a loss
making a profit
a) being liquidated. Cause Claims on assets include liabilities and owners' equity. Liquidation procedure predicts covering of owners' equity and liabilities of firm. Without doing this company can't be liquidated. So claims on assets would be most relevant in a situation where a company is being liquidated.