Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Preferred Stock

Financial Accounting

12. Stockholders' Equity

Preferred Stock

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Multiple Choice

Preferred stock is least likely to have which of the following characteristics?

Fixed dividend payments

Priority claim on assets in the event of liquidation

Voting rights similar to common stockholders

Preference over common stock in dividend distribution

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Verified step by step guidance

Understand the nature of preferred stock: Preferred stock is a type of equity security that typically has characteristics of both debt and equity. It is important to note that preferred stockholders generally do not have voting rights, unlike common stockholders.

Review the characteristics of preferred stock: Preferred stockholders usually receive fixed dividend payments, have priority claims on assets in the event of liquidation, and have preference over common stockholders in dividend distribution.

Compare voting rights: Common stockholders typically have voting rights that allow them to influence corporate decisions, such as electing the board of directors. Preferred stockholders, on the other hand, generally do not have these voting rights.

Identify the least likely characteristic: Based on the comparison, voting rights similar to common stockholders is the characteristic least likely to apply to preferred stock.

Conclude the reasoning: Preferred stock is designed to provide fixed income and priority in financial matters, but it does not grant voting rights, which are reserved for common stockholders.