Dividends in arrears on cumulative preferred stock
a. never have to be paid, even if common dividends are paid.
b. should be recorded as a current liability until they are paid.
c. enable the preferred stockholders to share equally in corporate earnings with the common stockholders.
d. will be paid only after common dividends have been paid.
e. must be paid before common stockholders can receive a dividend.
what is your question?
i think the correct answer would be a.
because when you get any kind of cut the first thing you would want to do is clean it out from any dirt or bactria.
a. never have to be paid, even if common di...