Passed Dividends on Cumulative Preferred Stock

question 133

Multiple Choice

Passed dividends on cumulative preferred stock:

• A)are referred to as dividends in arrears.
• B)are considered a liability until paid.
• C)must be paid by January 1 of the following year by law.
• D)are referred to as a liability and must be paid by January 1 of the following year by law.

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Definitions:

Methylhexane

A branched alkane with six carbon atoms and a methyl group, known for its various structural isomers.

Chloro

A prefix indicating the presence of a chlorine atom in an organic compound, usually attached to a carbon atom.

Dibromo

A prefix indicating the presence of two bromine atoms in a molecule, often used to describe compounds in organic chemistry.

Bromoalkane

A halogenated compound in which a bromine atom is attached to an alkane.