According to Priority, Which of the Following Claimants Is the Last

question 7

Multiple Choice

According to priority, which of the following claimants is the last to be paid after assets have been liquidated of a corporation?

• A) creditors
• B) common stockholders
• C) preferred shareholders
• D) bond holders

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Definitions:

Expenses

The cost of assets consumed or services used in the process of earning revenue.

Depreciation Expense

Depreciation Expense is an accounting method of allocating the cost of a tangible asset over its useful life.

Accounts Payable

Money owed by a business to its suppliers or vendors for goods and services purchased on credit.

Operating Activities

Activities that relate to the principal revenue-producing activities of an entity and other activities that are not investing or financing activities.