Which of the following is not a characteristic of cumulative preferred shares? Select answer from the options below

1.In the event of liquidation, all cumulative preferred dividends must be paid before common shareholders receive any cash.

2.Dividends in arrears must be disclosed in the notes to the financial statements.

3.Common share dividends cannot be paid until all current and prior cumulative preferred share dividends are paid in full.

4.Dividends in arrears are treated as a liability since the obligation exists to pay those dividends.