Dividends in arrears are dividends on
A) noncumulative preferred stock that have not been declared for some specified period of time.
B) common stock that may never be declared.
C) cumulative preferred stock that have been declared but not yet paid.
D) cumulative preferred stock that have not been declared for some specified period of time.

Question

Quizplus · Accepted Answer

Dividends in arrears refer to unpaid dividends on cumulative preferred stock that have not been declared for a certain period. Cumulative preferred stock requires that any missed dividends be paid out before any dividends can be paid to common stockholders.

Dividends in Arrears Are Dividends on