When Preference Shares Is Cumulative, Preference Dividends Not Declared in a Period

question 27

Multiple Choice

When preference shares is cumulative, preference dividends not declared in a period are

• A)considered a liability.
• B)called dividends in arrears.
• C)distributions of earnings.
• D)never paid.

---

Definitions:

Monopolistically Competitive

A market scenario where various companies offer products that are substitutes but different enough to give the companies some price-setting power.

Profit-Maximizing

The process or strategy of adjusting production and sale practices to achieve the highest possible profit.

Short Run

A period in economics where at least one input is fixed while others are variable, affecting the level of output or production.

Personalized Sweaters

Sweaters that are customized to include specific designs, colors, or patterns, often featuring names, initials, or unique graphics chosen by the purchaser.