Compare the General Characteristics of Ordinary and Preference Shares and Describe

question 18

Essay

Compare the general characteristics of ordinary and preference shares and describe the other conditions or features that can be attached to preference shares.

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Definitions:

Operating Activities

Transactions and events associated with the primary operations of a business, such as sales and service provision, reflected in its cash flow.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Statement of Cash Flows

A financial report that depicts how variations in income and balance sheet accounts affect the cash and cash equivalents, organized into the segments of operating activities, investing activities, and financing activities.

Operating Activities

Activities that relate to the primary operations of a company, such as sales, provision of services, and production.