Cumulative preference shares
Options
A
B
C
D
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Company AccountsQ-3 | Introduction to Company AccountsQuestion 4879 of 112
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
Cumulative preference shares:
They carry the right to cumulative dividends if the company fails to pay the dividend
in a particular year.
That is if for want of profit dividend is not paid the same gets accumu- lated and paid
as and when company earns.
All preference shares are always presumed to be cumulative unless the contrary is
stated in the terms of issue.
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