In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years.

Question

Quizplus · Accepted Answer

Cumulative preference shares have the feature where unpaid dividends are accumulated and must be paid out before any dividends can be distributed to other types of shares. This ensures that if a company skips a dividend payment, it is not forgiven but is carried forward to future years.

In Case of ……………