#1 - Dee Dee Uranga discusses preferred stock and why they prefer it over common stock. Preferred stock gives stockholders preference in dividend payouts and liquidation. They are less risky than common stock. #2 - Selene Million summarizes the key types of stock: common stock gives voting rights but is riskier, preferred stock is safer but lacks voting rights, callable preferred stock can be bought back by the issuer, and cumulative preferred stock guarantees unpaid dividends will be paid in future years. They prefer cumulative preferred stock. #3 - Joe Julian discusses the key roles of management accounting: planning, directing, and controlling. They believe directing is most important as it provides leadership to implement plans

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Dee Dee Urang
#1
Dee Dee Uranga
Please make you place the name and number next to the answer
so that I will know which reply goes to which person.
#1
Dee Dee Uranga
Jun 4, 2017
Jun 4 at 10:35pm
Manage Discussion Entry
The stock is a share of ownership in a corporation. The callable
preferred stock is a stock that the issuing corporation can
redeem under certain circumstances. The corporation that issues
the stock can buy it back at a certain price before the stock is
scheduled to mature. Sometimes a company may wish to attract
additional equity financing, but it is reticent to grant new
investors all of the traditional rights associated with common
stock (Wainwright, 2012). The purpose of a callable stock is to
prevent the dividends from getting too high. The issuer controls
the repurchase options instead of the investor.
Stocks are usually either common stocks or preferred stocks.
These stocks can be callable or cumulative. Preferred stock is
paid a dividend before common stockholders. When the stock is
cumulative, the dividends must be paid before common stock.
Sometimes a preferred stock has a fixed liquidation that means
the terms of the stock are fixed by the company. Convertible
preferred stock features are that the shares can be exchanged for
common stock at a specific ratio. When an investor has shares
of common stock, they have a claim on dividends and also get
voting rights when it comes to electing board members.
Common stock is risky because if a company closes, then the

2. stockholder loses. Preferred stock is safer because if the
company goes out of business, then the stockholders will still
get paid during liquidation.
I personally prefer the preferred stock because I want my
investment to be as secure as possible. I am not familiar enough
with the stock market to invest in common stocks. I am not
concerned with voting rights that come with common stock. I
am more concerned with reducing the risks of my investment. I
prefer to have a fixed dividend amount that is guaranteed.
V/R,
Dee Dee Uranga
References
Wainwright, S. K. (Ed.) (2012).
Principles of Accounting: Volume II
[Electronic version]. Retrieved from https://content.ashford.edu
#2
Selene Million
Tuesday
Jun 6 at 11:32am
Manage Discussion Entry
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Common stock is the equity stock that companies sell to
investors in exchange for ownership interest in the company.
Companies sell stock to investors to raise funds or capital for
operating purposes within the company. Common stockholders
have voting rights and control within the company.
Callable preferred stock is a stock that gives the issuing
company that option to buy the debt back at a fixed price before
the maturity date.
Preferred stock gives its holders preference over common
stockholders in dividend payouts, and the distribution of assets
if the company has to be liquidated. Preferred stockholders get
paid before common stockholders, but after creditors.

3. Cumulative stock is an aspect of preferred stock that dictates
that any unpaid dividends must be paid prior to any common
stock payouts. This is the most common type of stock and if
dividends are not paid in a year period, they will roll over into
the next year and then be paid with that year’s dividends.
Convertible stock is exchangeable for common stock at a pre-set
ratio. Common stockholders can exchange their stock, initially
they may lose part of the starting investment, but this will
protect their investment long-term.
If I were going to purchase any type of stock, it would be
cumulative preferred stock. Even though this option does not
give you voting rights or control within the issuing company, it
does protect your investment by ensuring that you are paid your
dividends and returns, and it also gives you the protection to
recoup your money if the company goes under, by the
liquidation of assets.
References:
Wainwright, S. K. (Ed.) (2012). (Links to an external
site.)Links to an external site.Principles of accounting: Volume
II [Electronic version]. Retrieved from
https://content.ashford.edu
#3
Joe Julian
Wednesday
Jun 7 at 6:59am
Manage Discussion Entry
Accounting is all about managing your finances, and that takes
place in three ways planning, directing, and controlling duties.
Many of these features are key to the accounting cycle, but each
one has there own importance. According to Wainwright,
“Planning is the process of deciding on a course of action to
reach a desired outcome. A business must plan its high-level
strategy as well as operational details” (Wainwright, 2012. Sec.

4. 3.2, Para. 2). What Wainwright is saying is the process of
deciding a certain action to reach a goal is considered planning,
and that a business must plan a strategy as well as how to
execute it. Planning is very important not just in business, but
in life. If you start a business without a plan, then you may fail,
and the same can be said about life. Planning is very important
and businesses/companies should take their time on this
process. The next feature is directing which seems like
assigning certain tasks to certain individuals. Wainwright
continues to say, “Many companies designate a corporate
controller as the person responsible for providing leadership
over the cost and managerial accounting duties. This person
may work closely with a chief financial officer (CFO), who is
usually responsible for external reporting and cash
management” (Wainwright, 2012. Sec. 3.2, Para. 7). What
Wainwright is saying is that companies will assign a leader that
is responsible for management accounting duties and providing
leadership for other employees, this leader/manager may work
with another person(with a higher leadership position) that is
responsible for cash management. This is just a typical business
or chain of command struggle. A certain person may be put in
charge, but they report to the person that put them in charge and
so on. Leadership is very important, and in the terms of
accounting it could mean who may or may not be getting paid.
What is the most important role of management accounting?
Even though planning is very important in business and also
life(like I mentioned), I would say that the most important role
of management accounting is directing. Anyone can make a plan
for a business and many peoples plans will be different, but
leadership in the form of directing is key to make those plans
fall into place. I have mentioned in many courses that I believe
that leadership and teamwork is key to a successful business.
Now you may say, you mentioned leadership then why isn't
controlling duties the most important? The answer is very easy.
If you don't have leadership assigned in a company(or once
again life) then chaos will start to happen. Leadership is needed

5. to guide others and that is no different with accounting. A good
example is if you just starting a company and had no knowledge
of accounting, you wouldn't hire a person that doesn't know
what to do with their money or what they should spend it on,
you will hire someone that knows how to use their money and
save. This is just my opinion, but without leadership whether it
is life, business, or even accounting, then you are setting
yourself up for failure; we don't want to fail we want to succeed
and directing/leadership is key for success.
How is that different than financial accounting?
The main difference between financial accounting and
management accounting is rules. Sometimes a manager/owner
will do whatever they can to meet their financial goals, but you
can't do that with financial accounting. With financial
accounting records show where you money is going and coming
from, but as a manager you may choose not to record these
transactions; of course this can be a problem in the future but if
the manager wants to meet their goals then they will do
everything they can to meet those goals. Money can make
people greedy, but that isn't a reason to cheat the system just to
get what you want.
Reference:
Wainwright, S. K. (Ed.) (2012). Principles of Accounting:
Volume II [Electronic version]. Retrieved from
https://content.ashford.edu/
#4
Dawn Cordero
Wednesday
Jun 7 at 4:52pm
Manage Discussion Entry
What is the most important role of management accounting?
The roles in management accounting are planning, directing

6. and controlling duties. The most important role in management
accounting is cost products. "Business decisions about what to
sell and how to price are often driven by cost studies and
measures. Thus, a firm grasp of costing is essential."
(Wainwright, 2012). Management accountants are key figures in
determining the status and success of a company.
How is that different than financial accounting?
Within Management accounting the accountants prepare these
documents and send them directly to personnel within a
company, such as managers and executives. These reports break
down numbers and projections related to departments, products,
employees and customers and how they affect the company.
Financial accounting reports are prepared by accountants and
sent directly to entities outside of the company, such as
stockholders, tax professionals and lenders. These reports show
concrete numbers, as well as past mistakes and achievements.
These documents are objective, factual and avoid projections.
Reference:
Wainwright, S. K. (Ed.) (2012). Principles of Accounting:
Volume II [Electronic version]. Retrieved from
https://content.ashford.edu