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WAEC Accounting 2018 Objective — Question 38

Question 38 of 50 from the West African Examinations Council (WAEC) Accounting 2018 Objective paper, with the correct answer and a full explanation.

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The parties who are paid last in the event of winding–up are

  • A. preference shareholders
  • B. debenture holders
  • C. ordinary shareholdersCorrect
  • D. trade creditors

Explanation

In a winding up, ordinary shareholders are paid last, after all creditors, debenture holders and preference shareholders have been settled.

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