Dividends may be declared and paid in cash or stock. 1. Preferred stockholders generally do not have the right to vote for the board of directors. 2. Dividends in arrears on cumulative preferred stock are considered a liability. 3. Dividends may be declared and paid in cash or stock. 4. Cash dividends are not a liability of the corporation until they are declared by the board of directors. 5. The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified. Business Assignment Help, Business Homework help, Business Study Help, Business Course Help
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