(a) What are the principal differences between common stock and preferred stock? (b) Preferred stock may be...

Question:

(a) What are the principal differences between and preferred stock?
(b) Preferred stock may be cumulative. Discuss this feature.
(c) How are dividends in arrears presented in the financial statements?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...