Asked by
Yealin Santiago
on Oct 15, 2024
Verified
Common stock always carries a preference for receiving dividends over preferred stock.
Common Stock
Equity securities that represent ownership in a company, providing voting rights and a share in the company’s profits through dividends.
Preferred Stock
A type of stock that typically guarantees dividends and has priority over common stock in asset liquidation.
Dividends
Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company distributes to its shareholders.
- Understand the accounting treatments for dividends, including cash dividends and their impact on retained earnings.
Verified Answer
SE
Learning Objectives
- Understand the accounting treatments for dividends, including cash dividends and their impact on retained earnings.