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Dividends in arrears are ________.A) passed dividends on noncumulative preferred stockB) passed dividends on common stockC) a liability on the balance sheetD) passed dividends on cumulative preferred stock

Respuesta :

Answer:

D) passed dividends on cumulative preferred stock

Explanation:

Dividend: The dividend is the amount that is paid to the shareholders out of the profits. The dividend is distributed based on the shareholders investing percentage criteria.  

The dividend in arrears means the dividend which is not yet paid on the expected date.  It is only in the cumulative preferred stock.  

The arrears of dividend is done for the cumulative preferred stock, not for the noncumulative preferred stock, and the dividend is paid to the common stock after preference stock.  

The dividend in arrears are not disclosed in the company balance sheet, it is disclosed in the balance sheet notes.  

So, all other options are incorrect.  

Answer:

B

Explanation:

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