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How to deal with cumulative preferred dividend

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Reference no: EM132726800

Problem 1: Which of the following statements best describes how to deal with cumulative preferred dividends that were not declared when due?

a. They are neither paid nor disclosed in the notes to the financial statements
b. They must be paid before any other dividends can paid to the common
c. They are reported as a liability on the balance sheet
d. They are disclosed as a liability in the notes to the financial statements

Reference no: EM132726800

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