Which of the Following Statements Is True Regarding Dividends on Preferred

Multiple Choice

Which of the following statements is true regarding dividends on preferred stock?

A) Preferred shareholders are guaranteed an annual dividend.
B) Preferred shareholders will receive a dividend if common shareholders are paid.
C) Preferred dividends in arrears are a current liability.
D) Preferred dividends in arrears are either a current or long-term liability, depending upon when the corporation last declared a dividend.