Preferred stock, on which the claims for unpaid dividends may be accumulated from year to year, is called

Question

Quizplus · Accepted Answer

This question is asking for the term used to describe preferred stock on which unpaid dividends may be accumulated from year to year. The correct answer is "cumulative." The other options are not relevant to the question. Participating and nonparticipating refer to whether the stock has the ability to share in additional profits beyond its stated dividend rate. Noncumulative means that unpaid dividends do not accumulate and are lost if they are not paid in a given year.

Preferred Stock, on Which the Claims for Unpaid Dividends May