1. Explain why investors choose preferred shares over common shares? (3 points) 2. Explain why there is no accounting entry on the dividend record date. (2 points) 3. Common shares cannot receive dividends unless preferred share dividends are paid first. Tor F 4. Explain why investors prefer cumulative and participating Preferred Shares? (3 points) 5. Dividends in arrears are considered a liability in the balance sheet. T or F