Dividends in arrears relate to which of the following?
A)Cumulative preferred shares
B)Participating preferred shares
C)Cumulative common shares
D)Participating common shares

Question

Quizplus · Accepted Answer

Dividends in arrears are typically associated with cumulative preferred shares. Cumulative preferred shareholders are entitled to receive any missed dividends before common shareholders can receive any dividends. If a company is unable to pay dividends in a given year, the dividends can accumulate or accrue and become dividends in arrears.

Dividends in Arrears Relate to Which of the Following