Which Statement Is FALSE

question 17

Multiple Choice

Which statement is FALSE?

• A)Preferred stockholders receive dividends before the common stockholders only if the preferred stock is cumulative.
• B)Preferred stockholders receive dividends before the common stockholders.
• C)Preferred stockholders receive assets before the common stockholders if the corporation liquidates.
• D)Preferred stockholders have the same basic four rights as common stockholders,unless a right is taken away.

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Definitions:

Job-Order Costing System

A costing method used to accumulate costs of production by job or batch, suitable for manufacturing processes producing unique products or jobs.

Overapplied

Refers to a situation where the manufacturing overhead allocated to products is more than the actual manufacturing overhead incurred.

Underapplied

Describes a situation in cost accounting when the allocated manufacturing overhead costs are less than the actual overhead incurred, leading to a discrepancy that needs adjustment.

Job-Order Costing System

A costing system used to accumulate and assign costs to custom orders, projects, or jobs, typically in manufacturing or services.