Final answer:
Preferred dividends in arrears are not considered a current liability because they can be carried over for several years and do not need to be paid within the company's next operating cycle.
Step-by-step explanation:
The option that is not an example of a current liability is B. Preferred dividends in arrears. Current liabilities are obligations that a company is due to pay within the next year or within its operating cycle. These include items such as accounts payable, wages, taxes due, and short-term loans.
Dividends Payable (A) are considered current liabilities because they are expected to be paid within the next year. Unearned Service Revenue (C) is also a current liability because it is money received for services that have yet to be performed, and the company has an obligation to provide these services within a short period. Salaries Payable (D) represent wages owed to employees that are typically paid out in the immediate future, and thus are current liabilities as well.
In contrast, Preferred dividends in arrears (B) are not considered a current liability because they are cumulative unpaid dividends that do not have to be paid within the next year. Preferred dividends in arrears can be owed for several years and only become a liability when a company declares a dividend.