Retractable preferred shares are
A) included in contributed capital on the statement of financial position.
B) callable at the corporation's option.
C) never issued.
D) presented under liabilities on the statement of financial position.

Question

Quizplus · Accepted Answer

Retractable preferred shares are presented under liabilities on the statement of financial position because they can be redeemed at the option of the shareholder, creating an obligation for the company.

Retractable Preferred Shares Are