Dividends in arrears are required to be reported in

Question

Quizplus · Accepted Answer

d. the footnotes accompanying the financial statements.
Dividends in arrears are not recorded as a liability on the balance sheet because the company is not legally obligated to pay these dividends until the board of directors declares them. Instead, they are disclosed in the notes to the financial statements to inform investors and creditors about the potential claims on future cash flows. The disclosure typically includes the amount of dividends in arrears and any relevant details regarding when they might be paid.

Dividends in Arrears Are Required to Be Reported in