deemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial position

deemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial position

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 8RQ

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Question

Redeemable preference shares will be shown under: a. Equity in the statement of financial position b. Non current liability in the statement of financial position c. Current asset in the statement of financial position d. Current liability in the statement of financial position

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

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