Dividends in arrears does not apply to stock which does not have a cumulative dividend preference.

Question

Quizplus · Accepted Answer

Dividends in arrears only apply to stock with a cumulative dividend preference, which means that any missed dividend payments must be paid before any dividends can be paid to common stockholders. If a stock does not have a cumulative dividend preference, any missed dividend payments are not obligated to be paid in the future.

Dividends in Arrears Does Not Apply to Stock Which Does