Expired Costs Are Called

question 19

Multiple Choice

Expired costs are called

• A) fixed.
• B) costs.
• C) expenses.
• D) profit.

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Definitions:

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common stockholders.

Cumulative Preferred Stock

A type of preferred stock that entitles the holder to receive dividends in arrears before common stockholders can receive any dividends.

Liability

Any financial obligation or debt that an entity is responsible for paying to another party.

Current Asset

An asset expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.