Dividend payments cannot exceed the balance sheet item "Retained earnings." This is known as the _____.
A. stock split rule
B. free cash flow rule
C. constant payout rule
D. impairment of capital rule
E. dividend irrelevance rule
Answer: D
You might also like to view...
A need con?ict occurs when two parties argue over "who" has the "right" facts
Indicate whether this statement is true or false.
Accounts payable $ 30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the above data, what is the amount of working capital?
A) $238,000 B) $138,000 C) $178,000 D) $64,000
Source documents are considered:
a. rarely for cash transactions. b. never when recording revenue transactions. c. as objective evidence. d. all of the above. e. none of the above.
Backflushing is a process where an end item’s BOM is exploded to determine ______.
A. materials and components that will be required B. materials and components that were used C. capacity requirements from production of end items D. capacity that was used for production of end items