Which of the following statements pertaining to preferred shares is correct?

A- If the preferred shares are non-cumulative, the current year's net income would be allocated to the preferred shares whether or not preferred dividends are declared.

B-There can never be any dividends in arrears when preferred shares are cumulative.

C-If the preferred shares are non-cumulative, only the current year's net income would be allocated to preferred shares if preferred dividends are declared, since dividends are never in arrears with non-cumulative preferred shares.

D-If the preferred shares are cumulative, the current year's net income would be allocated to the shares, only if dividends are declared in the year.