Where in the Balance Sheet Is Preferred Stock Usually Reported

question 87

Multiple Choice

Where in the balance sheet is preferred stock usually reported?

• A)long-term liabilities
• B)stockholders' equity
• C)contra stockholders' equity
• D)After long-term liabilities but before stockholders' equity

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Definitions:

Income Summary

An account to which the revenues and expenses are transferred at the end of an accounting period to calculate the net income or loss for the period before transferring this balance to owner's equity.

Purchases

Purchases refer to the acquisition of goods or services by a company for use in its operations or for resale to customers.

Unearned Rent

Income received by a landlord for rent that has not yet been earned because the period of occupancy has not yet occurred.

Liability

A financial obligation or debt that an individual or company owes to another party.