Below Are Various States of Financial Distres S

Multiple Choice

Below are various states of financial distres s:
1) defaulting on a principal payment on debt
2) restructuring debt
3) liquidating a firm
4) filing for bankruptcy
5) failing to make a required interest payment on time
What is the order of increasing gravity that analysts typically consider when assessing credit risk and bankruptcy risk according to a continuum of financial distress?

A) 5, 1, 2, 3, 4
B) 5, 2, 1, 4, 3
C) 1, 5, 2, 4, 3
D) 1, 5, 2, 3, 4