Why this is mistaken
An arrearage is already a dividend payable. A cumulative preference can affect priority, disclosure, and EPS before a supported declaration creates a payable.
Where to watch
When this mistake may appear
- A balanced total equity amount appears to support the transaction.
Check your work
Your work may contain this mistake if:
- Posts the event without reconciling class rights, share counts, dates, and source-specific equity balances.