Preference Shareholders Have the Right to Receive Assets in the Event

question 241

True/False

Preference shareholders have the right to receive assets in the event of liquidation before the ordinary shareholders.

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Definitions:

Cash

Money in the form of bills or coins; an asset that is readily available for transactions.

Dividends

Distribution of a corporation’s earnings to stockholders.

Closed

Refers to an account, operation, or period that has been finalized and no longer available for transactions or adjustments.

Posting

The process of transferring the debits and credits from the journal entries to the accounts.