Which of the Following Securities Must Be Reported as a Liability

question 1

Multiple Choice

Which of the following securities must be reported as a liability because they have the characteristics of both liabilities and equity, but the liability characteristic is dominant?

• A) Redeemable preferred stock.
• B) Stock options issued with a debt security.
• C) Detachable stock options.
• D) Mandatorily redeemable preferred stock.

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Definitions:

Plasma

The liquid component of blood where cells like red blood cells, white blood cells, and platelets are suspended.

Blood

A vital fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Diapedesis

The squeezing of a cell through a blood vessel wall.

WBCs

White blood cells, which are part of the immune system and help the body fight infections and other diseases.