Under GAAP, cumulative preferred dividends are reported as liabilities only if they have been declared by the corporation's board of directors. Basing your argument on SFAC No. 6 definition of liabilities and the consequent characteristics of liabilities, argue that cumulative preferred dividends are not liabilities until they have been declared. Given that dividends in arrears are reported either parenthetically or in the footnotes, doe s it matter if dividends in arrears are not reported as a liabilities on the face of the balance sheet? Explain.