12. Which of the following is a current liability?

A) Preferred dividends in arrears

B) A dividend payable in the form of additional shares of stock

C) A cash dividend payable to preferred stockholders

D) All of these

13. When is a contingent liability recorded?

A) When the amount can be reasonably estimated.

B) When the future events are deemed probable and the amount can be reasonably estimated.

C) When the future events are deemed probable.

D) When the future events will possibly occur and the amount can be reasonably estimated.

Please briefly explain why, thank you!!