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Which dividends in arrears on cumulative preference shares

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Reference no: EM132756564

Problem 1: One reason a company would buy back its shares is

A. to reissue them to its directors.

B. as an investment.

C. in order to increase their market price.

D. to conserve cash.

Problem 2: Dividends in arrears on cumulative preference shares

A. are considered to be a non-current liability.

B. are considered to be a current liability.

C. are deducted from shareholder's equity.

D. are not considered to be a liability but should be disclosed in the notes to the financial statements.

Reference no: EM132756564

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