Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. how should cumulative preferred dividends in arrea

How should cumulative preferred dividends in arrears be shown in a corporation's balance sheet? a)...

50.1K

Verified Solution

Question

Accounting

How should cumulative preferred dividends in arrears be shown in a corporation's balance sheet?

a) Note disclosure <------------------------------------- answer

b) increase in stockholder's equity

c) increase in current liabilities

d) increase in current liabilities for the amount expected to be declared within the year or operating cycle, and increase in long term liabilities for the balance.

I know the answer is choice a but can someone explain to me why? I'm confused on the definition of note disclosure. Thanks in advance!

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The risk of females experiencing an anxiety disorder during a given 12-month period is approximately 1...

Statistics
Q

Farmers Technology is a software company based in New Baden. On January 1, 2017, the company...

Accounting
Q

An unconscious response to a stimulus is referred to as a(n)arc.division.meninge.reflex.

Biology
Q

rmine the truth value for each simple statement Then use these truth values to determine...

Basic Math
Q

population of heights of all mature eucalyptuses in the forest is approximately normally distributed An...

Statistics
Q

On February 4,2023, Jackie purchased and placed in service a car...

Accounting
Q

Prepare adjusting journal entries for the dog training business for the period ended December 31....

Accounting
Q

Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate...

Accounting
Q

11. Rich Company's experience shows that 10% of its sales are for cash and 90%...

Accounting
Q

The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of...

Accounting
Q

The rate used to discount future benefits should be based on a. The government's marginal...

Accounting
Q

At the beginning of the year, Vendors, Inc, had owners' equity of $49,070. During the...

Finance