The Type of Stock in Which Stockholders Are Assured That

question 124

Multiple Choice

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.

• A)cumulative preferred
• B)convertible preferred
• C)participating preferred
• D)common
• E)callable preferred

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Definitions:

Capital Projects Fund

A governmental accounting fund used to account for financial resources set aside for the acquisition or development of major capital assets.

Governmental Fund Financial Statements

Financial reports that focus on the sources, uses, and balances of governmental funds and provide insight into fiscal accountability.

Proprietary Funds

Funds used by a governmental entity to account for activities similar to those found in private businesses, where the determination of net income, financial position, and changes in financial position is necessary.

For-Profit Organizations

Entities that operate with the primary goal of earning profit, distributing earnings to owners or shareholders.