21. Treasury Shares is a contra equity account.
22. The number of ordinary shares outstanding can never be greater than the number of shares issued.
23. When treasury shares are purchased, the cost is debited to Share Capital - Ordinary.
24. The priorities associated with preference shares include the right to vote before the ordinary shareholders.
25. Preference shareholders have the right to receive assets in the event of liquidation before the ordinary shareholders.
26. Preference shares have contractual preference over ordinary shares in certain areas.
27. Preference shareholders generally do not have the right to vote for the board of directors.
28. Dividends in arrears on cumulative preference shares are considered a liability.
29. Dividends may be declared and paid in cash or shares.
30. Cash dividends are not a liability of the corporation until they are declared by the board of directors.