Question

Preferred stockholders enjoy a preference over common stockholders with respect to _____.

Answer 1

Dividend

Step-by-step explanation:

In the case of dividends, the preferred stockholders get the priority over the common stockholder.

Out of the profits, the preferred stockholders get a fixed amount of dividend. First, dividend is paid to the preferred stockholders than only common stockholders will get the dividend

This dividend is shown in the retained earning account.

And, the treatment of this dividend would be shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid