Which of the following statements is true when dividends are not declared on cumulative preferred stock? Select one: a. The undeclared dividends are accrued as a liability. b. The shareholders must be allowed to convert their shares to common stock. c. The undeclared dividends accrue interest until paid. d. The undeclared dividends are disclosed in a note to the financial statements. Clear my choice

Which of the following statements is true when dividends are not declared on cumulative preferred stock? Select one: a. The undeclared dividends are accrued as a liability. b. The shareholders must be allowed to convert their shares to common stock. c. The undeclared dividends accrue interest until paid. d. The undeclared dividends are disclosed in a note to the financial statements. clear iny choice