2. Noncumulative preferred stock means that (1 Point) the board of directors has the option to decide whether past unpaid dividends will be paid to preferred shareholders the fixed dividend amount accumulates from year to year. The entire amount of all past unpaid dividends must be paid to the preferred shareholders before any dividends can be paid to common shareholders preferred dividends accumulate as earnings accumulate the balance in the Preferred stock account is increased by any additional shares that are sold during the year ho