Question

dividends in arrears occur when the company doesn't pay dividends to a. Cumulative preferred stockholders. B.noncumulative preferred stockholders. C.participating preferred stockholders. D. Nonparticipating common stockholders.

Answer 1

The answer to this question is the letter "A" Cumulative Preferred Stockholders.

The cumulative preferred stockholders are paid on par value and not on the sales price. The dividends in arrears occur when the company does not pay dividends to cumulative preferred stockholders.

Answer 2

The answer is A.cumulative preferred stockholders