After the Creditors, Who Amongst the Following Are Given Priority

question 23

Multiple Choice

After the creditors, who amongst the following are given priority of being repaid next during a firm's liquidation?

• A) Partners
• B) Shareholders
• C) Owners
• D) Allies
• E) Customers

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Definitions:

Withdrawals

Money or assets taken out of a business by its owners for personal use.

Worksheet Income Statement

A simplified version of an income statement prepared within an accounting worksheet to calculate net income or loss.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, reflecting its nature in accounting.

Financial Statement

Reports that provide information about a company's financial condition, performance, and cash flows, including balance sheets, income statements, and more.