Question 19:

STK-0002

Need a hint?

See Reference...

A company wishes to raise funds by issuing either bonds or cumulative preferred stock. How will the annual interest or dividend affect total liabilities each year?

	Interest is a current liability each year (until paid).
	Cumulative preferred dividends are a current liability each year (until paid).
	Both interest and cumulative preferred dividends are current liabilities each year (until paid).
	Interest and cumulative preferred dividends in arrears are current liabilities each year (until paid).