Which one of the following statements about preferred stock is true?

• Unlike dividends paid on common stock, dividends paid on preferred stock are a tax-deductible expense.

• Dividends on preferred stock payable during the next twelve months are considered to be a corporate liability.

• If preferred dividends are non-cumulative, then preferred dividends not paid in a particular year will be carried forward to the next year.

• Preferred stock usually has a stated liquidating value of $100 per share.

• There is no significant difference in the voting rights granted to preferred and common shareholders.

Which one of the following statements is false?

• An aging schedule includes only overdue accounts.

• Collection efforts may involve legal action.

• Aging schedules are used to monitor accounts receivable.

• Investments in accounts receivable equal average daily sales times average collection period.

• If sales are seasonal, the percentages shown on an aging schedule will vary during the year.