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The Financial Statements of a Corporation That Failed During the Current

Question 87

Multiple Choice

The financial statements of a corporation that failed during the current year to pay any dividends on its cumulative preferred stock should:


A) Include the amount of the omitted dividends among its current liabilities.
B) Include a footnote disclosing the amount of the dividends in arrears.
C) Show the amount of the omitted dividends as a deduction from retained earnings.
D) List the omitted dividends as a long-term liability.

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