Dividends in arrears
A) are always considered a liability.
B) are a liability when they are declared.
C) are never considered to be a liability.
D) are paid to preferred shareholders only after common shareholders receive their dividends.

Question

Quizplus · Accepted Answer

Dividends in arrears become a liability only when they are declared by the company's board of directors. Until then, they are not considered a liability.

Dividends in Arrears