A Company Has 2,000 Shares of $100 Par,6%,noncumulative Preferred Stock

question 41

Multiple Choice

A company has 2,000 shares of $100 par,6%,noncumulative preferred stock outstanding.If the board of directors declares a dividend this year,how much will the preferred shareholders receive?

• A)$100 per share
• B)$6 per share
• C)$200,000 in total
• D)$60 per share

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Definitions:

Accounting Principles

The foundational concepts and guidelines that govern the field of accounting, such as revenue recognition, matching principle, and full disclosure.

Extraordinary Item

Events or transactions that are both unusual in nature and infrequent in occurrence, impacting a company's financial position.

Selling Activities

Actions undertaken by a company to promote and sell its products or services, including advertising, sales promotions, and personal sales.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.