Which One of the Following Is a Type of Equity

question 57

Multiple Choice

Which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securities?

• A)senior bond
• B)debenture
• C)warrant
• D)common stock
• E)preferred stock

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Definitions:

Acid Test Ratio

A financial metric that assesses a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and receivables).

Current Assets

Assets that are expected to be converted into cash within one fiscal year or one operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Inventory

the total amount of goods or materials held in stock by a company, available for sale or use in production.