After a year of operation, they suffered a big loss and decided to terminate their business and as of this date, ARRRGH Company has a total assets of P140,000 and has a liabilities of P190,000 respectively. Based on these information alone Based on the preceding information, is Ana, Roro, Reiji, Rnold, Gina and Harold liable for ARRRGH Company's liabilities to its creditors? Explain your answer
After a year of operation, they suffered a big loss and decided to terminate their business and as of this date, ARRRGH Company has a total assets of P140,000 and has a liabilities of P190,000 respectively. Based on these information alone Based on the preceding information, is Ana, Roro, Reiji, Rnold, Gina and Harold liable for ARRRGH Company's liabilities to its creditors? Explain your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ana, Roro, Reiji, Rnold, Gina and Harold are wondering what form of business they are going to put up with their combined assets of P300,000. Based on the recommendation of Mr. E, an expert, the ideal for them is a corporation. With the recommendation in mind, they agreed to form a corporation named ARRRGH Company and executed its article of incorporation and submitted the same to mayor's office. After a year of operation, they suffered a big loss and decided to terminate their business and as of this date, ARRRGH Company has a total assets of P140,000 and has a liabilities of P190,000 respectively. Based on these information alone
Based on the preceding information, is Ana, Roro, Reiji, Rnold, Gina and Harold liable for ARRRGH Company's liabilities to its creditors? Explain your answers.
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