ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 298

b. Actually refinance the obligation.

c. Have capacity under existing financing agreements that can
be used to refinance the obligation.

d. Enter into a financing agreement that clearly permits the
entity to refinance the obligation.

42. A company has not declared a dividend on its
cumulative preferred stock for the past three years. What is the
required accounting treatment or disclosure in this situation?

a. Record a liability for cumulative amount of preferred stock
dividends not declared.