Preference Shares Are Similar to Bonds in Which of the Following

question 3

Multiple Choice

Preference shares are similar to bonds in which of the following ways?

• A)Preference shares always contain a maturity date.
• B)Both investments provide a fixed income.
• C)Both contain a growth factor similar to ordinary shares.
• D)None of the above.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that computes depreciation at twice the straight-line depreciation rate.

Depreciation Expense

Depreciation expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Floral Deliveries

The service of transporting flowers or floral arrangements to specified locations, often as part of a floristry business.

Units-Of-Activity

A depreciation method where the useful life of an asset is based on the number of units it produces or the hours it operates, rather than time.