Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is called:
A)Noncumulative preferred stock
B)Participating preferred stock
C)Callable preferred stock
D)Cumulative preferred stock
E)Convertible preferred stock

Question

Quizplus · Accepted Answer

Noncumulative preferred stock does not accumulate unpaid dividends. If dividends are not declared in a given year, the right to receive them is forfeited.

Preferred Stock on Which the Right to Receive Dividends Is