Which of the following statements is correct?

CS Executive · Corporate and Management Accounting · PYQS · June 2021
Which of the following statements is correct?
(A) Preference shares and debentures have priority right for a reward over ordinary shares
(B) Debentures will not receive interest in a year when the company makes an operating loss
(C) Preference shares will get dividend only when ordinary shares too receive them
(D) Ordinary shares could be paid dividend even when a company has negative retained earnings

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Corporate Accounting

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