Dividends not declared in one year carry over to the next year for A)cumulative preferred shares. B)cumulative common shares. C)arrears shares. D)pre-emptive shares.

Question

Quizplus · Accepted Answer

Cumulative preferred shares have a provision that any unpaid dividends from previous years will accumulate and be paid in the future before any dividends are paid to non-cumulative shareholders. Arrears shares and pre-emptive shares are not types of shares that have dividend provisions.

Dividends not Declared in One Year Carry Over to the Next