Which of the Following Is TRUE of Dividends in Arrears

question 77

Multiple Choice

Which of the following is TRUE of dividends in arrears?

• A) Dividends in arrears are a liability on the balance sheet.
• B) Dividends in arrears are passed dividends on noncumulative preferred stock.
• C) Dividends in arrears are passed dividends on cumulative preferred stock.
• D) Dividends in arrears are passed dividends on common stock.

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