Noncumulative preferred dividends in arrears are paid to preferred stockholders if sufficient funds

remain after payment of the current preferred dividend.

are not paid or disclosed.

must be paid before any other cash dividends can be distributed.

are disclosed as a liability until paid.

Question

Business

Bradley Bruce

2 March, 14:27

Noncumulative preferred dividends in arrears are paid to preferred stockholders if sufficient funds

remain after payment of the current preferred dividend.

are not paid or disclosed.

must be paid before any other cash dividends can be distributed.

are disclosed as a liability until paid.

+1

Answers (1)

Know the Answer?

Kate Wiley · Answer 1

Are not paid or disclosed.

Explanation:

A non-cumulative preference share is the one which cannot accrue dividends in case the company does not or is unable to pay dividends in a certain year. The term Non-cumulative refers to this particular characteristic of preference shares that their dividends cannot be carried to the next period in case of non payment.

Thus, such dividends are omitted and will not appear and will not be disclosed anywhere.

Noncumulative preferred dividends in arrears are paid to preferred stockholders if sufficient fundsremain after payment of the current preferred dividend.are not paid or disclosed.must be paid before any other cash dividends can be distributed.are disclosed as a liability until paid.

Noncumulative preferred dividends in arrears are paid to preferred stockholders if sufficient funds

remain after payment of the current preferred dividend.

are not paid or disclosed.

must be paid before any other cash dividends can be distributed.

are disclosed as a liability until paid.