Which of the Following Statements Is True Regarding Dividends on Preferred

question 74

Multiple Choice

Which of the following statements is true regarding dividends on preferred stock?

• A) Preferred shareholders are guaranteed an annual dividend.
• B) Preferred shareholders will receive a dividend if common shareholders are paid.
• C) Preferred dividends in arrears are a current liability.
• D) Preferred dividends in arrears are either a current or long-term liability, depending upon when the corporation last declared a dividend.

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