Which One of the Following Will Generally Have the Highest

question 21

Multiple Choice

Which one of the following will generally have the highest priority when assets are distributed in a bankruptcy proceeding?

• A)consumer claim
• B)dividend payment to preferred shareholder
• C)company contribution to the employees' retirement account
• D)payment to an unsecured creditor
• E)payment of employee wages

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Definitions:

Potential Benefit

The expected advantages or positive outcomes that may result from a specific action, investment, or decision.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and thus should not impact future business decisions.

Gross Margin

The difference between sales revenue and the cost of goods sold, usually expressed as a percentage of sales revenue.

Net Operating Income

Income generated from regular business operations, excluding deductions for interest and taxes.