After Paying Off All Creditors in a Liquidation There Is

question 9

Multiple Choice

After paying off all creditors in a liquidation there is $21 655 available for shareholders.Preference share capital is $20 000 and ordinary share capital is $20 625.The amount of the deficiency to be borne by ordinary shareholders is:

• A)$18 970;
• B)$20 625;
• C)$20 000;
• D)$21 655.

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Definitions:

Gastrocnemius

A major muscle located in the back part of the lower leg that helps in bending the knee and pushing the foot down, such as when walking or jumping.

Tibialis Anterior

A muscle in the lower leg that dorsiflexes and inverts the foot.

Calcaneal Tendon

Common tendon of the gastrocnemius, soleus, and plantaris muscle that attaches to the calcaneus; also called Achilles tendon.

Sternocleidomastoid

A muscle in the neck that is responsible for rotation and flexion of the head.