If a Corporation Has Dividends in Arrears of $25,000 on Its

question 112

Multiple Choice

If a corporation has dividends in arrears of $25,000 on its cumulative preferred shares,it must:

• A) Set aside cash for the amount of the dividends.
• B) Pay the dividends in arrears before it can pay dividends to its common shareholders.
• C) Capitalize this amount as a part of permanent capital.
• D) Appropriate retained earnings for this amount.

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Definitions:

Court-appointed Counsel

Lawyers provided by the state or court for individuals who cannot afford to hire their own attorney.

Restrictive Setting

An environment or context that limits personal freedoms or behaviors, often for safety or therapeutic reasons.

Mental Health Facility

An establishment dedicated to the treatment and care of individuals with psychological, behavioral, or cognitive disorders, offering various services and support.

Civil Commitment

Forcing of a person into a mental health facility against his or her will.