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CIMAPRA17-BA4-1 Exam - Topic 6 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 100
Topic #: 6

[All CIMAPRA17-BA4-1 Questions]

Which of the following would be paid last by a company which had been placedin insolvent liquidation?

AOutstanding loan capital and interest due to the holder of an unsecured debenture.

BShare capital invested by the shareholders.

CFees owed to the directors

DUnpaid employees' wages

Show Suggested Answer

Suggested Answer: A, D, F

by Jeniffer at Sep 17, 2024, 04:00 AM

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Eric

8 months ago

Totally agree with B, shareholders are at the bottom of the list!

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Merlyn

8 months ago

Wait, are unpaid wages really lower priority than directors' fees?

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Casandra

8 months ago

No way, it’s C for sure, directors' fees are usually last.

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Kenneth

8 months ago

I think it's actually A, unsecured debentures are tricky.

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Micaela

9 months ago

Definitely B, shareholders get paid last.

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Glendora

9 months ago

I recall that directors' fees can sometimes be tricky, but I think they get paid before shareholders, so maybe it’s B after all.

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Kiera

9 months ago

I practiced a similar question where unsecured debts were paid last, so I’m leaning towards A, but I could be wrong.

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Ahmad

9 months ago

I'm not entirely sure, but I feel like unpaid wages might be prioritized over other debts, so it could be A or C.

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Brandon

9 months ago

I think I remember that shareholders are usually at the bottom of the priority list in liquidation, so maybe it's B?

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Gladys

9 months ago

Ah, this is a tricky one. I remember learning about the order of payments in insolvency, but I'm drawing a blank right now. I'll have to make an educated guess and hope for the best.

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Sol

9 months ago

Hmm, I'm not totally sure about this one. I know that secured creditors get paid first, but I'm a bit fuzzy on the order after that. I'll need to review my notes to be confident.

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Lauran

9 months ago

This question seems straightforward, I think the answer is B - share capital invested by the shareholders would be paid last in an insolvent liquidation.

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Lavera

10 months ago

Okay, let me think this through. In an insolvent liquidation, the order of payment is typically: 1) secured creditors, 2) preferential creditors like employees, 3) unsecured creditors, and 4) shareholders. So I believe the answer is B.

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Florinda

1 year ago

Unpaid employees' wages? What, are they supposed to work for free while the company goes under? That's like asking a starving person to share their last crumb.

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Darrin

1 year ago

C) Fees owed to the directors

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Zita

1 year ago

B) Share capital invested by the shareholders.

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Arlyne

1 year ago

A) Outstanding loan capital and interest due to the holder of an unsecured debenture.

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Ammie

1 year ago

C) Fees owed to the directors? Hah, of course the directors would try to get their cut before the employees. Gotta love corporate greed!

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Deane

1 year ago

D) Unpaid employees' wages

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Alease

1 year ago

B) Share capital invested by the shareholders.

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Franklyn

1 year ago

A) Outstanding loan capital and interest due to the holder of an unsecured debenture.

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Lang

1 year ago

A) Outstanding loan capital and interest due to the holder of an unsecured debenture? Sounds like a fancy way of saying 'the bank gets paid first.' No surprise there.

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Jerry

1 year ago

C) Fees owed to the directors.

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Louann

1 year ago

B) Unpaid employees' wages.

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Berry

1 year ago

A) Share capital invested by the shareholders.

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Youlanda

1 year ago

B) Share capital invested by the shareholders? That's just crazy, they should be the last ones to get paid! What were the exam writers thinking?

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Cristal

1 year ago

B) Share capital invested by the shareholders

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Tamesha

1 year ago

C) Fees owed to the directors

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Jina

1 year ago

D) Unpaid employees' wages

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Mozell

1 year ago

A) Outstanding loan capital and interest due to the holder of an unsecured debenture.

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Darnell

1 year ago

D) Unpaid employees' wages definitely seems like the correct answer. I can't imagine a company not paying its workers first before anything else.

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Cristy

1 year ago

But what about outstanding loan capital and interest due to the holder of an unsecured debenture? Shouldn't that be paid first?

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Charlesetta

1 year ago

I agree with Christa, employees should be paid first before other creditors.

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Christa

1 year ago

I think unpaid employees' wages would be paid last.

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