Where should hard retractable preferred shares be reported on a firm's Balance Sheet?
A)Asset section
B)Liabilities section
C)Share Capital section
D)Retained Earnings

Question

Quizplus · Accepted Answer

Hard retractable preferred shares are considered a liability because they have a mandatory redemption feature, meaning the company is obligated to repay the amount at a future date.

Where Should Hard Retractable Preferred Shares Be Reported on a Firm's