Which one of the following disclosures should be made in the equity section of the balance sheet, rather than in the notes to the financial statements?
A) Dividend preferences
B) Liquidation preferences
C) Call prices
D) Conversion or exercise prices

Question

Quizplus · Accepted Answer

Liquidation preferences are a type of equity security that gives the holder the right to receive a specified amount of money in the event that the company is liquidated. This type of security is typically disclosed in the equity section of the balance sheet, rather than in the notes to the financial statements.

Which One of the Following Disclosures Should Be Made in the Equity