Final Answer:
The rights or claims to a company’s assets that creditors have are called A. liabilities.
Step-by-step explanation:
Creditors’ claims to a company’s assets are considered liabilities. Liabilities represent the obligations a company owes to external parties, including creditors. These claims can include loans, accounts payable, and other financial obligations that the company must fulfill. In accounting terms, liabilities are recorded on the balance sheet and represent the company’s debts and obligations.
Creditors’ rights to a company’s assets are reflected in the balance sheet equation: Assets = Liabilities + Equity. This equation illustrates that the creditors’ claims (liabilities) are one of the components that make up the total assets of the company. Therefore, when creditors have rights or claims to a company’s assets, these are categorized as liabilities on the company’s balance sheet.
Understanding the distinction between assets, liabilities, and equity is crucial for assessing a company’s financial health and its ability to meet its obligations to creditors.
Correct option is A. liabilities.