Target Exam

CUET

Subject

Accountancy Part A

Chapter

Accounting for Shares

Question:

Which of the following is a feature of preference shares of a company?

(A) Fixed amount of dividend

(B) Preferential right to dividend

(C) The preferential right to the repayment of capital before anything is paid to equity shareholders in case of winding up of a company

(D) Preference dividend is considered a charge against profit like interest on debentures.

Choose the correct answer from the options given below:

Options:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer:

(A), (B) and (C) only

Explanation:

The correct answer is Option (2) → 

(A), (B) and (C) only