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Assume That a Corporation's Dividends Are Two Years in Arrears

Question 61

Multiple Choice

Assume that a corporation's dividends are two years in arrears for its outstanding preferred stock. In the corporation's financial statements, these arrearages are:


A) Disclosed as a current liability in the balance sheet
B) Disclosed as a long-term liability in the balance sheet
C) Disclosed in the notes to the financial statements
D) Disclosed as a current liability (for the most recent arrearage) and a long-term liability (for the oldest arrearage) in the balance sheet
E) Not disclosed

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