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What Are Dividends in Arrears and How Do They Affect Preferred Shares?

por webmaster | Oct 18, 2022 | Bookkeeping

The stockholder equity section of ABC’s balance sheet shows retained earnings of $4 million. When the cash dividend is declared, $1.5 million is deducted from the retained earnings section and added to the dividends payable sub-account of the liabilities section. The...

What Are Dividends in Arrears and How Do They Affect Preferred Shares?

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