Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as

Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as

a. an increase in current liabilities.
b. an increase in stockholders' equity.
c. a footnote.
d. an increase in current liabilities for the current portion and long-term liabilities for the long-term portion.


Answer: a footnote