Answer: Under IFRS, preferred stock dividends are reported in the income statement as interest expense
Explanation:
Preference shares, also called preferred stock, are the shares of the stock of a company whereby dividends are paid to the shareholders before the dividends are being issued.
For this type of shares, even if the company goes bankrupt, the preferred stockholders will be paid from the assets of the company before the common stockholders.
Under IFRS, preferred stock dividends are reported in the income statement as interest expense
Answer:
The correct answer is
D) both the listing broker and the buyer broker
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Answer:
C. shortage cost / (overage cost + shortage cost).
Explanation:
For computing the service level for the seasonal products, we divide the shortage cost to the overage cost plus shortage cost.
The overage cost is that cost which is incurred for ordering excess inventory which is not required for the present level of production level. It is a loss for the company.
And, the shortage cost is that cost in which the company has no stock in their warehouse through which it impacts the business image and the goodwill. The company's customers will go to another company which results in the loss of the company customers.
For service level, we added the overage cost and shortage cost in the denominator side
So, the correct option is c.
Answer: C. A decrease to assets for $45,000.
Explanation:
When shareholders redeem their stock, the company pays them for the redeemed stock at a certain price which in this case is $45.
The total cost of redemption is therefore:
= 45 * 1,000
= $45,000
The company uses cash to pay for this which is an asset. Assets will therefore reduce by $45,000 which is the amount of cash paid.