Retained Earnings Are Occasionally Restricted

question 64

Multiple Choice

Retained earnings are occasionally restricted

• A) due to contractual loan restrictions.
• B) if preferred dividends are in arrears.
• C) to set aside cash for dividends.
• D) to keep the legal capital associated with share capital intact.

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Definitions:

Nominal Characteristic

A qualitative attribute of data that categorizes but does not imply any quantitative ordering or measure.

Nominal Variables

Factors that denote classifications without any inherent hierarchy or sequence.

Dummy Variables

Binary variables created to represent categorical data in order to use such variables in regression analysis.

Nominal Variable

A type of categorical variable for which there is no inherent order or ranking among the categories.