ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Preference share.
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Equipment.
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Inventory.
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House.
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None of the above.
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Detailed explanation-1: -The four main types of preference shares are callable shares, convertible shares, cumulative shares, and participatory shares.
Detailed explanation-2: -Non-participating preference shares As the name suggests, non-participating preference shareholders do not have a share in the extra earnings or surplus assets during the liquidation of a company. This type of share entitles its shareholders to receive only the pre-fixed dividends.
Detailed explanation-3: -Illustration – preference shares If an entity issues preference (preferred) shares that pay a fixed rate of dividend and that have a mandatory redemption feature at a future date, the substance is that they are a contractual obligation to deliver cash and, therefore, should be recognised as a liability.
Detailed explanation-4: -Convertible Preference Shares. Non-Convertible Preference Shares. Redeemable Preference Shares. Non-Redeemable Preference Shares. Participating Preference Shares. Non-Participating Preference Shares. Cumulative Preference Shares. Non-Cumulative Preference Shares. More items