Preferred Stock Is a Source of Long-Term Funds That Requires

question 131

True/False

Preferred stock is a source of long-term funds that requires a future repayment of the stockholder's investment.

---

Definitions:

U.S. Dollar

The official currency of the United States of America, widely used as a benchmark and reserve currency globally.

Income Statement

A financial statement that shows a company’s revenue and expenses over a specific period, leading to the net income or loss for that period.

Functional Currency

Functional currency is the main currency used by a business or economic entity in its primary economic environment for accounting purposes.

Straight-Line Method

A method of accounting for depreciation by equally spreading the cost of an asset over its useful life.