A preference share on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

Question

Quizplus · Accepted Answer

Noncumulative preference shares do not accumulate unpaid dividends. If a dividend is not declared in a given year, the right to receive these dividends is forfeited, unlike cumulative preference shares where unpaid dividends accumulate and must be paid out before any dividends can be issued to common shareholders.

A Preference Share on Which the Right to Receive Dividends