Question

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

Answer 1

Answer:

The correct answer is a separate schedule.

Explanation:

They are called preferred shares because they have priority over common shares in the payment of dividends or upon settlement, although they are subordinated to the payment of bonds or obligations. Their conditions are negotiated directly between the issuing entity -bank- and the Investor or shareholder. They are a high financial risk asset that can give high bank interest or large losses .

Preferential securities generally do not have the right to vote, but may have priority over common shares in the payment of dividends and upon settlement. Preferential securities may have a dividend that is paid before any dividend that is being paid to common shareholders. Preferential values ​​may have the characteristic of convertibility into common shares. In bankruptcy, preferential investors will be paid with assets before common shareholders and after bankrupt creditors. The conditions of the preferential values ​​are established in a “Certificate of Designation”.