WAEC Financial Accounting 2018 Question 38

Question 38

Company Accounts

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

  1. A.preference shareholders.
  2. B.debenture holders.
  3. C.ordinary shareholders.
  4. D.trade creditors.
Show the answer and explanation

Answer: C (ordinary shareholders.)

Explanation

Ordinary shareholders rank last.