Which of the Following Is TRUE of Dividends in Arrears

question 6

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 non-cumulative preference shares.
• C)Dividends in arrears are passed dividends on ordinary shares.
• D)Dividends in arrears are passed dividends on cumulative preference shares.

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Definitions:

Incomplete Dominance

A genetic phenomenon where the phenotype of a heterozygote is intermediate between the phenotypes of the two homozygotes, indicating a blend of the parental traits.

Dominant Allele

An allele that expresses its phenotypic effect even when heterozygous with a recessive allele, masking the effect of the recessive allele in heterozygotes.

Recessive Allele

A type of allele that produces its characteristic phenotype only when its paired allele is identical.

Karyotype

Display of chromosomes arranged by pairs.