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:

Inventory

The total amount of goods and materials held by a company intended for sale or used in production.

Net Fixed Assets

Net Fixed Assets represent the total value of a company's property, plant, and equipment minus any depreciation, amortization, and impairment charges that have been taken against these assets.

Long-term Debt Ratio

A financial metric that measures the proportion of a company's total debt that is due over a period longer than one year, relative to its total assets.

Profit Margin

Profit margin is a financial metric expressed as a percentage, indicating the portion of revenue that remains as profit after all expenses are paid.