Question

Q.6 The preference shares, which carry the right to accumulate unpaid
dividend in future years are called Non - Cumulative Preference Shares

Answer 1

Answer:

1. Cumulative and Non-Cumulative: The preference shares that have the right to collect unpaid dividends in the future years, in case the same is not paid during a year are known as cumulative preference shares. Non-cumulative shares, the dividend is not accumulated if it is not paid in a particular year.