When a Dividend Paid to Stockholders Who Own Mandatorily Redeemable

Multiple Choice

When a dividend paid to stockholders who own mandatorily redeemable preferred stock, the company must report the dividend

A) As an adjustment to retained earnings in its statement of owners' equity.
B) As interest expense in the income statement.
C) As a reduction to other comprehensive income.
D) In the financing activities section of the statement of cash flows.