Preferred Stock Is Called Preferred Because It Usually Has Two

question 93

Multiple Choice

Preferred stock is called preferred because it usually has two preferences.These preferences relate to:

• A)Dividends and voting rights.
• B)Par value and dividends.
• C)The preemptive right and voting rights.
• D)Assets at liquidation and dividends.

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Definitions:

Unconsolidated Investee

A company in which the parent company has a significant investment but not enough to exert full control or consolidate the financial statements.

IFRS

A widely-adopted set of rules and principles used in financial reporting and accounting, aimed at providing transparency and consistency in financial statements across international borders.

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Accrued Interest

Interest that has been incurred but not yet paid, representing the amount of interest that accrues on a loan or bond between payment periods.