Tash Ltd Has Issued Both Ordinary Shares and Cumulative Preference

Multiple Choice

Tash Ltd has issued both ordinary shares and cumulative preference shares. If no dividends are paid for the year ended 31 December 2022, which one of the following statements regarding the company's dividends is true?

A) and 2023 must be paid before any ordinary dividend is paid for 2023.
B) The preference dividend for 2023 must be paid before any ordinary dividend is paid for 2023.
C) The ordinary dividend for 2023 must be paid before any preference dividend is paid for 2023.
D) The ordinary dividend for both 2022 and 2023 must be paid before any preference dividend is paid for 2023.