Explain the Differences Between Public Accountants and Management Accountants

question 106

Essay

Explain the differences between public accountants and management accountants.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that has a feature where missed dividend payments accumulate and must be paid out before dividends can be issued to other stock types.

Outstanding Shares

Represents the total shares of a corporation’s stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash.

Market Value

The contemporary rate at which a marketplace allows the purchase or sale of an asset or service.