In a Bankruptcy Proceeding,which of the Following Classes of Bankruptcy

question 63

Multiple Choice

In a bankruptcy proceeding,which of the following classes of bankruptcy creditors will receive highest priority?

• A) government tax claims
• B) employees who are owed wages earned within 180 days of the bankruptcy petition
• C) consumers who have paid deposits or prepayments for undelivered goods or services
• D) spouse, former spouse, child, or guardian with claims for domestic support
• E) general creditors

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Definitions:

Available-for-sale Debt Portfolio

Debt securities that are not classified as held-to-maturity or trading securities, and can be sold in response to needs for liquidity or changes in interest rates.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not yet been sold or liquidated.

Amortized Cost Basis

A valuation method for certain investments that smooths out returns over the life of the investment, taking into account amortization or accretion adjustments.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.