​KembaraXtra- Financial Terms- accumulated dividend refers to a dividend that has not yet been paid to holders of cumulative preference shares and is carried forward to future accounting periods.


Cumulative preference shares give shareholders the right to receive unpaid dividends before ordinary shareholders receive any dividend payments.


If the company is unable to pay the dividend during a particular period, the unpaid amount accumulates and becomes a continuing obligation of the company.


The Companies Act requires businesses to disclose the amount of unpaid cumulative dividends and the periods during which the arrears occurred for each class of shares.


Accumulated dividends therefore represent a liability to the company and provide important information to investors and shareholders regarding outstanding obligations.