Which of the following may qualify as cash equivalents? O Investment in preference shares acquired within a short period of their maturity and with a specified redemption date O None of these O Investment in share options O Investment in ordinary shares

Which of the following may qualify as cash equivalents? O Investment in preference shares acquired within a short period of their maturity and with a specified redemption date O None of these O Investment in share options O Investment in ordinary shares

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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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