Of the Preferred Creditors,the Highest Priority of Claim Is

question 31

Multiple Choice

Of the preferred creditors,the highest priority of claim is

• A)up to $2000 arrears in wages per employee.
• B)up to three months of rent due to the landlord.
• C)expenses and fees of the trustee in bankruptcy.
• D)up to two years of municipal taxes.
• E)the amount required by government to be deducted from employees' salaries.

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Definitions:

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.

Working Capital

The amount of current assets minus current liabilities, indicating the liquidity of a business.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.

Working Capital

An indicator of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.