The-definition.com

Definition

Dividends in arrears

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

Share it:  Cite

More from this Section

  • Prior period adjustment
    The correction of an error in previously issued financial statements is known as a prior ...
  • T account
    T account is the basic form of an account. The T account is a standard shorthand in accounting, ...
  • Dirty Surplus Accounting
    Dirty Surplus Accounting is the process of reporting income items as part of equity rather ...
  • Unearned revenues
    Companies record cash received before revenue is earned by increasing a liability account ...
  • Free cash flow
    Free cash flow means cash provided by operating activities adjusted for capital expenditures ...