Which of the Following Securities Has the Highest Priority with Regard

question 22

Multiple Choice

Which of the following securities has the highest priority with regard to the distribution of both earnings and proceeds from the liquidation of assets of a firm?

• A)Corporate bonds
• B)Preferred stock
• C)Common stock
• D)American depository receipts (ADRs)
• E)Foreign stocks

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Definitions:

Accounts Payable

The amount a company owes to suppliers for items or services purchased on credit.

Liabilities

Obligations in terms of finances that an organization must fulfill to external parties, involving the exchange of economic advantages like funds, goods, or assistance over time.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Capital

Represents the amount of funds provided by owners or investors to support business operations.