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9781118582794 Debate 15-2 The Nature of Cumulative Preferred DividendsUnder GAAP, cumulative preferred dividends are reported as liabilities only after they have been declared by the corporation's board of directors. For the following debate, support your arguments by referring to the SFAC No. 6 definition of liabil- ities and the consequent characteristics of liabilities.

Team Debate:

Team 1: Argue that cumulative preferred dividends are liabilities, even if they are not declared.

Team 2: Argue that cumulative preferred dividends are not liabilities unless they are declared.

Requirements:

Write both sides. Word document format. Request references as needed.