A Preference Share with a Feature Allowing Preference Shareholders to Share

question 128

Multiple Choice

A preference share with a feature allowing preference shareholders to share with ordinary shareholders in any dividends in excess of the percent or dollar amount stated on the preference shares are called:

• A) Cumulative preference share.
• B) Callable preference share.
• C) Participating preference share.
• D) Convertible preference share.
• E) Preferential preference share.

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Definitions:

Overdue Account

A financial account that has not been paid by its due date, thereby incurring late fees or other penalties.

Current Liabilities

Short-term financial obligations due within one year or within the entity's operating cycle, whichever is longer, necessary for the ongoing operations of the business.

Interest Expense

The charge an entity incurs for using borrowed capital over a set period.

Interest Payable

The amount of interest expense that has accumulated but has not been paid by the end of the accounting period.