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Farnon Company Has Not Declared or Paid Dividends on Its

Question 20

Multiple Choice

Farnon Company has not declared or paid dividends on its cumulative preferred stock in the last three years.These dividends should be reported


A) as a current liability.
B) as a reduction in stockholders' equity.
C) in a note to the financial statements.
D) as a noncurrent liability.

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