Which Statement Is Correct Regarding Dividend Entitlement

question 39

Multiple Choice

Which statement is correct regarding dividend entitlement?

• A)Cumulative preferred shares do not have any rights to missed dividend payments.
• B)Non-cumulative preferred shares must be paid all missed dividend payments when dividends are declared.
• C)A corporation need only pay dividends when it declares them to be payable.
• D)A company can avoid paying dividends in arrears on cumulative preferred shares if it is to pay dividends on common shares.

Understand the process and importance of closing entries in the accounting cycle.

Understand and identify different types of accounts and their roles in accounting.

Grasp the concept of the adjusting process and its importance in financial reporting.

Learn how to prepare adjusting entries for various financial situations.

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Definitions:

Fungi

A kingdom of non-photosynthetic organisms that includes molds, yeasts, and mushrooms, characterized by their chitinous cell walls and absorption of nutrients from the environment.

Gene Pool

The complete set of unique alleles that would be found within every individual of a particular population or species.

Adaptations

Characteristics or traits that have evolved through natural selection, enabling organisms to survive and reproduce in specific environments.

Natural Selection

The process by which heritable traits that make it more likely for an organism to survive and successfully reproduce become more common in a population over successive generations.