Full Answer
What is participating preferred stock?
Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called: Participating preferred stock. Prior period adjustments are reported in the: Statement of retained earnings.
What does a dividend preference for preferred stock mean?
A dividend preference for preferred stock means that: Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders. A liability for dividends exists:
What is cumulative preferred stock?
Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called: Cumulative preferred stock. Callable preferred stock. Participating preferred stock.
When are dividends allocated to preferred stockholders and common shareholders?
Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders. A liability for dividends exists: On the date of declaration. A liquidating dividend is: A return of a portion of the original investment back to the stockholders. A stock dividend is recorded with a transfer from:
What is cumulative preferred stock?
Cumulative preferred stock gives its owners a right to be paid both the current and all prior periods' unpaid dividends before any dividend is paid to common stockholders.
What is a separate class of stock?
A separate class of stock, typically having priority over common shares in distribution of both dividends and assets.
What is par value stock?
is an ownership share in a corporation that allows its holders voting rights at shareholder meetings and the opportunity to receive dividends. Common issued at par value. When par value shares are issued exactly at par, cash is debited and common stock or preferred stock account is credited. Common stock issued above par.
What is distribution of stock?
A distribution of a corporation own shares to its stockholders without payment in return.
Does noncumulative preferred stock have prior periods?
Noncumulative preferred stock confers no right to prior periods' unpaid dividends if they were not declared in those prior periods.