Dividends in arrears are dividends on
A) cumulative preferred shares that have been declared but have not been paid.
B) noncumulative preferred shares that have not been declared for a given period of time.
C) cumulative preferred shares that have not been declared for a given period of time.
D) common dividends that have been declared but have not been paid.

Question

Quizplus · Accepted Answer

Dividends in arrears refer to unpaid dividends on cumulative preferred shares that have not been declared for a given period. Cumulative preferred shares require that missed dividends be paid out before any dividends can be paid to common shareholders.

Dividends in Arrears Are Dividends on