Which of the following would not apply to a preference shares?
A) higher order of ranking in relation to asset distributions on the winding up of the company
B) redeemable at a set date in the future
C) can be classified as an expense
D) can be converted to ordinary shares

Question

Quizplus · Accepted Answer

Preference shares cannot be classified as an expense, as they represent a form of equity financing rather than an expense on the income statement. A, B, and D are all applicable characteristics of preference shares.

Which of the Following Would Not Apply to a Preference