Which Part of Shareholders' Equity May Not Be Used to Pay

question 40

Multiple Choice

Which part of shareholders' equity may not be used to pay cash dividends?

• A) retained earnings
• B) revenue reserves
• C) share capital
• D) A and B

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Definitions:

Stable

Unchanging and consistent over time; a term often used to describe equilibriums or conditions that do not fluctuate drastically.

Attitudes

A psychological tendency expressed by evaluating an entity with some degree of favor or disfavor, shaping our responses toward that entity.

Unconscious

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions, according to Freudian psychology.

Negative

Characterized by the absence rather than the presence of distinguishing features.