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

Question

Quizplus · Accepted Answer

Dividends in arrears refer to dividends on cumulative preferred shares that have not been declared for a given period of time. Unlike noncumulative preferred shares, cumulative preferred shares accumulate unpaid dividends that must be paid out before dividends can be distributed to common shareholders.

Dividends in Arrears Are Dividends on