A preferred stockholder is sometimes referred to as a residual ...

[folubunmi]

A preferred stockholder is sometimes referred to as a residual owner, since in essence he or she receives what is leftthe residualafter all other claims on the firm's income and assets have been satisfied.
 
  Indicate whether the statement is true or false

Question 2

A corporation ________.
 
  A) must use the straight-line depreciation method for tax purposes and double declining depreciation method financial reporting purposes
  B) can use straight-line depreciation method for tax purposes and MACRS depreciation method financial reporting purposes
  C) can use different depreciation methods for tax and financial reporting purposes
  D) must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes

[karmakat49]

Answer to Question 1

FALSE

Answer to Question 2

C