How Should Cumulative Preference Dividends in Arrears Be Shown in a Corporation's

question 41

Multiple Choice

How should cumulative preference dividends in arrears be shown in a corporation's statement of financial position?

• A)Note disclosure
• B)Increase in shareholders' equity
• C)Increase in current liabilities
• D)Increase in current liabilities for the amount expected to be declared within the year or operating cycle, and increase in non-current liabilities for the balance

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