Which of the Following Claims Is First to Be Paid

question 57

Multiple Choice

Which of the following claims is first to be paid in a Chapter 7 liquidation?

• A) secured creditors
• B) the federal government for taxes due
• C) the expenses incurred by those administering the bankruptcy process
• D) none of the above

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Definitions:

Annuity

An investment product providing a stable flow of payments, often employed to generate earnings for retired individuals.

Return

Return refers to the gain or loss generated on an investment over a particular period, expressed as a percentage of the investment's initial cost.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Discount Rate

The discount rate applied to the future cash flows of a financial instrument to determine its current value.