1. If preferred stock is cumulative, the:

A. preferred dividends not declared in a given year are called dividends in arrears.

B. preferred stockholders and the common stockholders receive the same total dollar amount of dividends.

C. preferred stockholders and the common stockholders receive equal dividends.

D. common stockholders will share in the preferred dividends.

2. The date on which a cash dividend becomes a binding legal obligation is on the:

A.	last day of the fiscal year-end.
	B.declaration date.
C.	date of record.
D.	payment date.