The Financial Statements of a Corporation That Failed During the Current

question 22

Multiple Choice

The financial statements of a corporation that failed during the current year to pay any dividends on its cumulative preferred stock should:

• A)Include the amount of the omitted dividends among its current liabilities.
• B)Include a footnote disclosing the amount of the dividends in arrears.
• C)Show the amount of the omitted dividends as a deduction from retained earnings.
• D)List the omitted dividends as a long-term liability.

---

Definitions:

Traits

Characteristics or attributes of an organism that are expressed by genes and/or influenced by the environment.

Genotypes

The genetic makeup of an organism, consisting of the alleles inherited from both parents that determine specific traits.

Genome

The complete set of genes or genetic material present in a cell or organism, serving as its biological blueprint.

Uniformity

The quality or state of being uniform, consistent, or identical in all cases and at all times.