When preferred stock, is cumulative, preferred dividends not declared in a given period are called dividend in arrears.
To illustrate, assume that scientific leasing has 5000 shares of 7% is $35,000 (5,000 but dividends are two years in arrears. In this case, preferred stockholders are entitled to receive the following dividends in the current year.
Dividends in areas (35,000 $70,000
Current-year dividends 35,000
Total preferred dividends $105,000
More from this Section
- Continuous audit
A continuous audit or a detailed audit, as it is sometimes called, is an audit which involves a detailed examination of the books of account at
- Dates for dividend declaration
Three dates are important in connection with dividends: (1) the declaration date, (2) the record date, and (3) the payment date.
- Raw materials
Raw materials are the basic goods that will be used in production but have not yet been placed into production.
- Capital profits
Capital profits are those profits which are not earned during the regular course of business or in other words which are not trading
- Process cost system
Process cost system is a system of accounting used when a large quantity of similar products are manufactured. Production is continuous to ensure that adequate...
Accountancy involves the preparation of the final accounts to show the result of the business at the end of the financial period. The man
- Definition of Audit
The word “audit” is derived from the Latin word “audire”, which means to hear. In middle ages, whenever the owners of a business