Which of the Following Is an Incorrect Priority of Claims

question 12

Multiple Choice

Which of the following is an incorrect priority of claims in the event of liquidation? (Note: The first item would be paid first.)

• A) Secured creditors, Wages due employees, Unsecured creditor claims, Common shareholders
• B) Secured creditors, Unsecured creditor claims, Preferred shareholders, Common shareholders
• C) Secured creditors, Administration expenses, Common shareholders, Preferred shareholders
• D) Secured creditors, Wages due employees, Taxes due federal government, Preferred shareholders

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Definitions:

Four-Figure Accuracy

A level of precision in numerical computation where the result is rounded to four significant digits.

Five-Figure Accuracy

Describes precision to five significant digits in numerical representation, ensuring a high degree of accuracy in calculations or measurements.

Accurate

Precisely correct, exact, or without error.

Cent

A monetary unit that is equal to one hundredth of the basic unit of currency in many countries, including the United States.