Choice "A" is correct. Cumulative preferred dividends are dividends that must be paid before any dividend can be paid to holders of non-preferred shares. The right to the dividend accumulates if it is not paid in a particular year.
Choice "b" is incorrect. There is no right to convert preferred shares into common stock unless that right is specifically granted.
Choice "c" is incorrect. Preferred stock need not have voting rights.
Choice "d" is incorrect. Preferred dividends are not guaranteed. They must be paid before any common shareholder can be paid a dividend, but no dividend might ever be paid.
