When Preferred Stock Is Cumulative Preferred Dividends Not Declared in a Period

question 177

Multiple Choice

When preferred stock is cumulative preferred dividends not declared in a period are

• A) considered a liability.
• B) called dividends in arrears.
• C) distributions of earnings.
• D) never paid.

---

Definitions:

Relationship

A connection, association, or involvement between individuals, which can vary in terms of closeness, duration, and type.

Frontal Lobes

The portion of the cerebral cortex behind the forehead, involved in personality, intelligence, and the control of voluntary muscles.

Hippocampus

The structure in the limbic system that has a special role in the storage of memories.

Hypothalamus

A small forebrain structure, located just below the thalamus, that monitors three pleasurable activities—eating, drinking, and sexual behavior—as well as emotion, stress, and reward.