Which statements regarding classes of shares is true

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Question 1: Which of the following statements regarding classes of shares is true?

a) Common shares have priority over preference shares in determining the amount of dividends to pay to each type of share.

b) Under IFRS, when shares are sold on a subscription basis, the subscription receivable account should always be reported as equity.

c) Corporations must have at least two classes of shares to ensure adequate assignment of voting rights.

d) Equity instruments should be examined carefully for underlying conditions that meet the definition of debt, which would require the instruments to be classified as such.

Reference no: EM132599909

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