WAEC Financial Accounting 2004 Question 27

Question 27

Company Accounts

A class of preference shares in which dividend rights are carried forward is

  1. A.cumulative
  2. B.participating
  3. C.redeemable
  4. D.floating-rate.
Show the answer and explanation

Answer: A (cumulative)

Explanation

Unpaid dividends on cumulative preference shares are carried forward.