Accounting
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Boundless Accounting
Reporting of Stockholders' Equity
Accounting Textbooks Boundless Accounting Reporting of Stockholders' Equity
Accounting Textbooks Boundless Accounting
Accounting Textbooks
Accounting

Section 4

Additional Detail on Preferred Stock

Book Version 3
By Boundless
Boundless Accounting
Accounting
by Boundless
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3 concepts
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Dividend Preference

A corporation may issue two basic classes or types of capital stock, common and preferred, both of which can receive dividends.

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Liquidation Preference

The main purpose of a liquidation where the company is insolvent is to satisfy claims in the manner and order prescribed by law.

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Accounting for Preferred Stock

All preferred stock is reported on the balance sheet in the stockholders' equity section and it appears first before any other stock.

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