Jurisdiction-specific corporate laws limit directors' freedom to declare dividends. Which of the following is/are true?
a. The board may not declare dividends "out of capital," that is, debited against the contributed capital accounts, which result from fund-raising transactions with owners.
b. The board must declare them "out of earnings" by debiting them against the Retained Earnings account, which results from earnings transactions.
c. "Capital" may mean the par or stated value of outstanding common shares or the total amount paid in by shareholders.
d. Some jurisdictions allow corporations to declare dividends out of the earnings of the current period even if the Retained Earnings account has a debit (negative) balance because of accumulated losses from previous period.
e. all of the above
E
You might also like to view...
A company decided to conduct a market survey for its new MP3 player which it had priced at $150. However, in the survey, 95 percent of the participants said that the maximum they would pay for the MP3 player is $100
This is an example of which of the following possible consumer reference prices? A) historical competitor price B) expected future price C) usual discounted price D) upper-bound price E) last price paid
Putting ideas into words, images, or actions takes place during which step in the communication process?
A) Medium determination B) Transmission C) Encoding D) Decoding E) Interaction
A response by an offeree that contains terms and conditions different from or in addition to those of the offer is called a(n) ________
A) rejection B) counteroffer C) revocation D) acceptance
At least one or both deviational variables in a goal constraint must equal ________
Fill in the blank with correct word.