2.

Preferred stock where owners do not receive passed dividends from prior years is called cumulative preferred stock.

A. TRUE

B. FALSE

When a prior period adjustment is made by a company A. The beginning Retained Earnings balance is corrected due to an error discovered in the current accounting period B. The beginning Retained Earnings balance is corrected due to additional dividends being declared by the company's board of directors C. The beginning Common Stock balance is corrected due to an error in a previous accounting period D. The beginning Retained Earnings balance is corrected due to an error in a previous accounting period