23. Dividends in arrears on cumulative preferred stock (2 points) never have to be paid, even if common dividends are paid must be paid before common stockholders can receive a dividend. should be recorded as a current liability until they are paid. enable the preferred stockholders to share equally in corporate earnings with the common stockholders 74 Comstock camnanu nrovides consulting services and billed the client $2.500. As a result of this