What are the rights of a shareholder in a preferred stock?
B. Present shareholders' right to purchase shares from any additional share issuances. C. Present shareholders' right to purchase treasury shares when reissued. D. Preferred stockholders' right to dividends. Present shareholders' right to purchase shares from any additional share issuances.
What is preferent stock?
cumulative net income of the firm since its beginning that has not been distributed to its stockholders in the form of dividends. 12. Preferred stock is used much less than long-term debt in the capital structure of most industrial and merchandising companies principally because:
Why is preferred stock used much less than long-term debt?
Preferred stock is used much less than long-term debt in the capital structure of most industrial and merchandising companies principally because: A. the preferred stock dividend requirement is a fixed claim against income, but interest on long-term debt is not a fixed amount.
What are the balance sheet disclosures for preferred stock?
Balance sheet disclosures for preferred stock include all of the following except: A. The number of shares issued. B. The number of shares outstanding. C. The liquidating or redemption value. D. The credit or market value. E. The number of shares authorized.
Which of the following is not a right or preference associated with preferred stock?
Option(A) the right to vote is the correct answer because this is not the right of the preferred stockholder, but it is the right...
Which of the following is generally not a right granted to owners of preferred shares?
Which of the following is generally NOT a right granted to owners of preferred shares? Variable dividend amounts. A company goes bankrupt and its assets are to be divided between its shareholders and debtholders.
Which of the following does not appear in the stockholders equity section of a balance sheet?
All of the above would affect total Retained Earnings. Which of the following does not appear in the stockholders' equity section of a balance sheet? Preferred Stock.
Which of the following is one of the two generally practiced methods for electing corporate directors?
5. Which of the following is one of the two generally practiced methods for electing corporate directors? A. Democratic voting.
Does preferred stock have voting rights?
One main difference from common stock is that preferred stock comes with no voting rights. So when it comes time for a company to elect a board of directors or vote on any form of corporate policy, preferred shareholders have no voice in the future of the company.
Which of the following is a feature of a preferred stock?
Preferred stocks are hybrid securities that have the characteristics of both bonds and stocks. Preferred stocks have dividend priority over common stock. The holders of preferred shares receive dividends before the holders of common shares. Preferred stockholders generally do not have voting rights in the company.
Which of the following is included in the rights of common stockholders?
Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.
Which of the following accounts is not included in the asset section of the balance sheet?
Balance sheet. All of the following are classified as assets except: Selected Answer: Accounts Receivable.
Which of the following is not shown in balance sheet?
Solution(By Examveda Team) Rent expenses does not appear in Balance sheet.
Which of the following is a reason that a corporation would prefer to issue stock instead of bonds?
Which of the following is a reason that a corporation would prefer to issue stock instead of bonds? Dividend payments can be deducted for income tax purposes but interest payments cannot. Expansion is accomplished without surrendering ownership control.
Which of the following is not a limitation of financial statements?
(C) Lack of qualitative analysis. Answer: B. Intra-firm comparison. Financial statement analysis has some limitations like it is based on historical cost, ignores price level changes, is affected by personal bias, lacks precision and use of qualitative analysis.
Which of the following is not an owner's equity account?
The correct option is (b) Capital stock. The capital stock is the maximum amount of capital that a company can issue.
What is a stock dividend?
15. A stock dividend is similar to a cash dividend in that: A. the stockholder's equity in the firm's net assets is reduced by each.
Is preferred stock less than long term debt?
12. Preferred stock is used much less than long-term debt in the capital structure of most industrial and merchandising companies principally because: A. the preferred stock dividend requirement is a fixed claim against income, but interest on long-term debt is not a fixed amount. B. preferred stock has a fixed liquidation or redemption value, ...
Is dividend paid on preferred stock deductible?
D. for income tax purposes, dividends paid on preferred stock are not deductible, but interest on long-term debt is deductible. for income tax purposes, dividends paid on preferred stock are not deduct ible, but interest on long-term debt is deductible. 13. The annual per share dividend requirement of a 6%, $80 par value preferred stock ...
What is a stock dividend?
The shares outstanding are the: shares issued minus the shares held in the treasury. A stock dividend is similar to a cash dividend in that: retained earnings and the amount of potential future dividends is reduced by each. The principal reason for a company having a common stock split is to:
Why do companies split common stock?
The principal reason for a company having a common stock split is to: decrease the market value per share of common stock. Treasury stock involves shares which are: authorized and issued, but not currently outstanding. Similarities between preferred stock and bonds include all of the following, except:
