Dividends in arrears are dividends on
A)cumulative preferred stock that have been declared but have not been paid.
B)non-cumulative preferred stock that have not been declared for a given period of time.
C)cumulative preferred stock that have not been declared for a given period of time.
D)common dividends that have been declared but have not yet been paid.

Question

Quizplus · Accepted Answer

Dividends in arrears refer to unpaid dividends on cumulative preferred stock that have not been declared for a given period. Cumulative preferred stock requires that any missed dividends be paid out before any dividends can be paid to common shareholders.

Dividends in Arrears Are Dividends on