Treasury shares are non-voting and a do not receive dividends declared
by the company. B and C are true statements.
Financial Reporting And Analysis MCQ - Financial Reporting And Analysis Section 1
Non-controlling interests are equity interests of minority shareholders
in the subsidiary companies that have been consolidated by the parent
company, but that are not wholly owned by the parent company.
Common stockholders get dividends once preferred stockholders have
been paid. They enjoy voting rights. Preferred stockholders do not have
voting rights, but do get dividends. Treasury stockholders do not have
voting rights and do not get dividends.
Preferred shares are classified as equity or financial liabilities depending
on their characteristics. For example, perpetual preferred shares are
classified as equity while preferred shares with mandatory redemption
are classified as financial liabilities.
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In order to analyze what portion of company’s assets are liquid, an analyst is
most likely to use:
A common-size balance sheet expresses all balance sheet accounts as
a percentage of total assets and provides insight into what portion of a
company’s assets is liquid. In contrast, cash and current ratios measure
liquidity relative to current liabilities, not relative to total assets.
