Retractable preferred shares
A) do not offer a repayment of principal.
B) are presented in the liability section of the balance sheet.
C) are presented in the equity section of the balance sheet.
D) would be allocated between the liability and equity sections of the balance sheet depending on the exact terms of redemption or retraction.

Question

Quizplus · Accepted Answer

Retractable preferred shares can be classified as either liabilities or equity depending on the terms of redemption or retraction, such as whether the issuer or holder has the option to retract.

Retractable Preferred Shares