Stockit Inc

Multiple Choice

Stockit Inc.has 1,000 shares of 5%,$100 par value,cumulative preferred stock outstanding.In its first two years of business,Stockit did not declare a dividend.As a result,Stockit's balance sheets at the end of its first two years of business should:

A) report Dividends Payable.
B) report Dividends Arrears Payable.
C) not report any Dividends Payable.
D) report Dividends Expense.