A Preference Share Is a Financial Liability

question 11

True/False

A preference share is a financial liability:
A. If it provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date.
B. If it gives the holder the right to require the issuer to redeem the instrument at or after a particular date for a fixed or determinable amount.
C. If it gives the issuer the sole discretion to redeem the instrument at a date of their choice for a fixed or determinable amount.
D. it provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date and if it gives the holder the right to require the issuer to redeem the instrument at or after a particular date for a fixed or determinable amount.
E. If it provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date and If it gives the issuer the sole discretion to redeem the instrument at a date of their choice for a fixed or determinable amount.

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Definitions:

Salary Expense

The total amount paid by a business to its employees for the work done over a specific period, often monthly or annually.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Current-Year Net Income

Current-Year Net Income is the total profit or earnings of a company for the ongoing fiscal year, after subtracting all expenses, taxes, and costs.

Accrued Salaries

Wages that have been earned by employees but have not yet been paid by the employer.