Which One of the Following Statements About Preferred Stock Is

question 16

Multiple Choice

Which one of the following statements about preferred stock is true?

• A)Unlike dividends paid on common stock,dividends paid on preferred stock are a tax-deductible expense.
• B)Dividends on preferred stock payable during the next twelve months are considered to be a corporate liability.
• C)If preferred dividends are non-cumulative,then preferred dividends not paid in a particular year will be carried forward to the next year.
• D)There is no significant difference in the voting rights granted to preferred and common shareholders.
• E)Preferred stock usually has a stated liquidating value of $100 per share.

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Definitions:

Criterion

A standard, rule, or test on which a judgment or decision can be based, often used in the context of evaluations or querying databases.

Query Design View

A feature in database systems offering a graphical representation of SQL queries, facilitating easier query creation and modification through a user-friendly interface.

Criteria

Conditions or parameters specified in a database query that filter which data records are returned in the search results.

Query Design View

An interface in database software that allows users to create queries visually by arranging tables, columns, and specifying criteria.