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

Question

Quizplus · Accepted Answer

Noncumulative preferred dividends do not accumulate if not declared, so they are neither paid nor disclosed as a liability.

Noncumulative Preferred Dividends in Arrears