Which of the following is true about cumulative preference shares?
Answer Details
Cumulative preference shares are a type of preference shares where unpaid dividends are carried forward to the next financial year. This means that if the company is unable to pay the dividend in a particular year, it is added to the unpaid amount from previous years and is paid out in the future when the company can afford it. Therefore, the correct option is "Unpaid dividends are carried forward". The other options are not applicable to cumulative preference shares.