Free riders are also known as

Preferred stock is advantageous in that it ______.

a. has priority over creditors at liquidation b. has priority over common stock when dividends are declared c. receives dividends before creditors are to receive any interest payments d. has priority over common stock at liquidation

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2012. The dividend is to be paid on August 15, 2012, to stockholders of record on July 31, 2012. The correct entry to be recorded on July 15, 2012, will include a

A. debit to Dividends Payable B. debit to Cash Dividends C. credit to Cash D. credit to Cash Dividends