O-LevelAccountingThe fundamentals of accounting7707/13 · Oct/Nov 2020 · Q231 Mark
Which statement about preference shares is not correct?
APreference shareholders do not have voting rights.
BPreference shareholders receive a fixed dividend.
CPreference shareholders have a prior claim before ordinary shareholders in the event of liquidation.
DPreference shareholders receive their dividend after the ordinary shareholders have been paid.
✓ Correct answer
D: Preference shareholders receive their dividend after the ordinary shareholders have been paid.
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