Which of the following is/are not true regarding the classification of redeemable preferred shares on the balance sheet?
a. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption.
b. If only the issuing firm has the option to redeem, then the preferred shares are part of its liabilities.
c. If the issuing firm must redeem the preferred shares (so-called "mandatory redemption"), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as a liability.
d. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders' equity under U.S. GAAP.
e. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under IFRS.
B
You might also like to view...
A craft union's bargaining power depends greatly on the control it can exercise over the supply of its workers.
Answer the following statement true (T) or false (F)
According to the text, ________ are the most important actors in a company's microenvironment
A) stockholders B) employees C) suppliers D) resellers E) customers
Tweets are limited to 140 characters or less. Why do experts feel tweets should be even shorter?
A) Shorter tweets allow the user to send out several tweets in a row to "tell a story". B) Shorter tweets aid in the ability to retweet the message. C) Users have a short attention span and won't read a tweet of 100 or more words. D) Twitter will automatically change links to a length of 22 characters. E) Shorter tweets allow the use of more visual aids and emoticons.
A downside of placing market orders is that investorsmay end up buying at a higher price than he or she expected to pay.
Answer the following statement true (T) or false (F)