When convertible preferred stock is converted into common stock:.
a. cash is debited.
b. a gain or loss can be recognized.
Solved
Show answers
More tips
- F Food and Cooking The Health Benefits of Flaxseed oil...
- S Style and Beauty Why is Sugaring Better than Waxing for Hair Removal?...
- W Work and Career Where can you learn to be a flight attendant?...
- G Goods and services How to Properly Calculate the Power of Your Air Conditioner?...
- F Food and Cooking Effective Methods to Organize Videos in your iPad According to Content...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
- T Travel and tourism Maldives Adventures: What is the Best Season to Visit the Luxurious Beaches?...
- H Health and Medicine Kinesiology: What is it and How Does it Work?...
Answers on questions: Business
- B Business Question 3 Rosa has an order to make curtains for a customer for which she will be paid £500. To complete the work, she estimates that she will need to employ 3 seamstresses...
- B Business Explain the term CEO in an organisation...
- B Business Research report about an item can be anything Criteria is ^^...
- B Business 1. What is a business plan?...
- B Business How much information is enough for an accountant to comply with the full disclosure principle?...
- B Business What classes and clubs do i need to take in order to become an elementary teacher...
- E English What is a key difference between the organizational aspects of the texts? the conclusion of the poe excerpt indicates cheerfulness, while the conclusion of the king excerpt...
- C Computers and Technology What food does swiss eat on christmas?...
- M Mathematics Barry ran 30 miles in april, 60 miles in may, 50 miles in june, and 80 miles in july. suppose the pattern continues. how many miles will he run in august...
- S Social Studies What did the virginia and new jersey plan have in common...
Ответ:
b. a gain or loss can be recognized.
Explanation:
Convertible preferred stock is an option for shareholders with preferred shares where they have the choice of converting their preferred shares to common shares. The conversion is best done at a time when the common stock is above the conversion price. At this time, the stockholder can make a profit or gain. But if the common share is below the conversion price, the shareholder would most likely record a loss if he converts.
One disadvantage of this conversion process is that, once the preferred stock is converted to the common stock, the preferred shareholder gives up his rights as a preferred shareholder which includes no fixed dividends and higher claims on assets.
Ответ:
Strategic business units
Explanation: