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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?

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Suggested Answer: A, D, F

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

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Eric
6 months ago
Totally agree with B, shareholders are at the bottom of the list!
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Merlyn
6 months ago
Wait, are unpaid wages really lower priority than directors' fees?
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Casandra
6 months ago
No way, it’s C for sure, directors' fees are usually last.
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Kenneth
7 months ago
I think it's actually A, unsecured debentures are tricky.
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Micaela
7 months ago
Definitely B, shareholders get paid last.
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Glendora
7 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
7 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
8 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
8 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
8 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
8 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
8 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
8 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
11 months ago
C) Fees owed to the directors
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Zita
12 months ago
B) Share capital invested by the shareholders.
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Arlyne
12 months 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
11 months ago
D) Unpaid employees' wages
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Alease
11 months 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
12 months 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
12 months 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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