Which is not true about preferred shares?
A)Preferred shares have a higher priority status relative to common shares.
B)They usually do not carry voting rights.
C)The same capital accounts are used to record the issuance of preferred shares and common shares.
D)Preferred shareholders receive dividends in arrears only if the shares are cumulative.

Question

Quizplus · Accepted Answer

Different capital accounts are used to record the issuance of preferred shares and common shares. Preferred shares are usually recorded in a separate account called "preferred stock" or "preferred shares" account.

Which Is Not True About Preferred Shares