YZ Company Has $20,000 of Dividends in Arrears

question 26

Multiple Choice

YZ Company has $20,000 of dividends in arrears.Based on this information, which of the following statements is false?

• A)Dividends in arrears are not considered to be liabilities.
• B)An obligation for dividends in arrears exists only after the board of directors declares payment.
• C)The investment community looks favorably on companies with dividends in arrears since the money is redirected toward more important growth opportunities.
• D)The amount of dividends in arrears should be disclosed in the notes to the financial statements.

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Definitions:

Organic Halide

An organic compound containing one or more halogen atoms (fluorine, chlorine, bromine, or iodine) covalently bonded to carbon.

Carboxylation

The chemical process of adding a carboxyl group (-COOH) to a molecule, often important in biosynthetic pathways.

Carboxylic Acid

Organic compounds containing a carboxyl group (-COOH), characterized by their acidic properties and widespread occurrence in nature.

13C NMR Spectrum

A representation of the nuclear magnetic resonance of carbon-13 atoms within a molecule, revealing the distinct chemical environments of carbon atoms.