Noncumulative preferred dividends in arrears
A)are not paid or disclosed.
B)must be paid before any other cash dividends can be distributed.
C)are disclosed as a liability until paid.
D)are paid to preference shareholders if sufficient funds remain after payment of the current preference dividend.

Question

Quizplus · Accepted Answer

Noncumulative preferred dividends in arrears are not required to be paid or disclosed because they do not accumulate if not declared in a given year.

Noncumulative Preferred Dividends in Arrears