Which One of the Following Unsecured Liabilities Has the Highest

question 20

Multiple Choice

Which one of the following unsecured liabilities has the highest priority when an insolvent company is about to be liquidated?

• A) Federal income taxes payable.
• B) Claims for expenses of administering the bankruptcy.
• C) Loans made to the company by its stockholders.
• D) Employees' claims for salaries.
• E) Bank loans.

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