The preference shares holders who have no claim for the arrears of dividend are _________ preference shares.

A Cumulative
B Non-cumulative
C Redeemable
D Irredeemable

Correct Answer: Non-cumulative

The preference shares holders who have no claim for the arrears of dividend are Non-cumulative preference shares. Non-cumulative preference shares are those type of preference shares, which have right to get fixed rate of dividend out of the profits of current year only. They do not carry the right to receive arrears of dividend.
Bissoy MCQ
#Commerce #Business And Commerce

Related Questions

Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as
A non-participating preferred stock
B participating preferred stock
C non-cumulative preferred stock
D cumulative preferred stock
The preference shares which cannot be converted into equity shares are __________ preference shares.
A cumulative
B non-cumulative
C redeemable
D non-convertible
Assume the following shares outstanding : Preferred stock, 6% , Tk. 50 per value, cumulative, 1000 shares with dividends in arrears 3 years, for 20-1, 20-2 and 20-3. Common stock, Tk. 100 per value, 2000 shares. Total dividends declared in 20-4 were Tk. 50,000. The total amount of dividends to which common stockholders are entitled is :
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B Tk. 50000
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B bull
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A company wishes to pay out all available profits as dividends net profit is TA. 26,600 . There are 20,000 Preference shares of TA. I each with dividend at a rate of 8% and 50,000 Ordinary shares of TA. I each . Tk.5,000 is to be transferred to General Reserve. What Ordinary dividends are to be paid , in perc
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C 20 percent
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A company wishes to pay out all available profits as dividends. Net profit is TA. 26,600. There are 20,000 Preference shares of TA. I each with dividend at a rate of 8%, and 50,000 Ordinary shares of TA. I each, Tk, 5,000 is to be transferred to General Reserve. What Ordinary dividends are to paid, in percentage?
A 60%
B 40%
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A 56
B 70
C 78
D none of these
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B Contributed capital will decrease by Tk 1.6 million and retained earnings will increased by Tk. 1.6 million
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D Contributed capital will decrease by Tk. 32 million and retained earnings will increase by Tk. 32 million
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