Preferred Stock That Must Be Paid Back or Redeemed by a Corporation

question 79

Multiple Choice

Preferred stock that must be paid back or redeemed by a corporation is reported as a(n) ________ on the balance sheet.

• A)component of stockholders' equity
• B)contra account in stockholders' equity
• C)liability
• D)asset

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Definitions:

Poisson Distribution

A probability theory used to predict the likelihood of various events happening over a specified period, assuming the events are rare and independent.