Passed Dividends on Cumulative Preferred Shares

question 88

Multiple Choice

Passed dividends on cumulative preferred shares:

• A) are a liability until paid and may turn into a long-term liability with the passage of time
• B) are lost forever by the preferred shareholders
• C) must be paid by January 1 of the following year by law
• D) are referred to as dividends in arrears

---

Definitions:

Thomas Szasz

A psychiatrist and academic known for criticizing the moral and scientific foundations of psychiatry, particularly the concept of mental illness.

American Psychiatric Association

A professional organization of psychiatrists and psychiatric professionals dedicated to promoting mental health care, ethical practices, and the advancement of psychiatric research.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, often requiring professional treatment.

Psychological Disorders

Mental health conditions characterized by alterations in thinking, mood, or behavior associated with distress or impaired functioning.