Noncumulative preferred dividends in arrears
A) must be paid before any other cash dividends can be distributed.
B) are not paid or disclosed.
C) are disclosed as a liability until paid.
D) are paid to preferred shareholders if sufficient funds remain after payment of the current preferred dividend.

Question

Quizplus · Accepted Answer

Noncumulative preferred dividends in arrears are not required to be paid or disclosed because they do not accumulate if not declared.

Noncumulative Preferred Dividends in Arrears