A Company Has Not Declared a Dividend on Its Cumulative

question 55

Multiple Choice

A company has not declared a dividend on its cumulative preference shares for the past three years.What is the required accounting treatment or disclosure in this situation?

• A)Record a liability for cumulative amount of preference shares dividends not declared.
• B)Disclose the amount of the dividends in arrears.
• C)Record a liability for the current year's dividends only.
• D)No disclosure or recognition is required.

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Definitions:

Act Aggressively

describes behavior that is forceful, hostile, or attacking, often with the intention to dominate or intimidate.

Punished Children

Refers to children who have received a form of punishment, potentially as a means of discipline or correction.

Nightmares

Bad dreams occurring during REM sleep.

Punishment by Removal

Punishment by removal involves decreasing the likelihood of a behavior by removing a desirable stimulus following the behavior.