Which of the Following Statements Best Describes the Role of Current

question 33

Multiple Choice

Which of the following statements best describes the role of current and accumulated earnings and profits in determining if a distribution is a dividend?

• A) A distribution will never be a dividend if current earnings and profits for the year are negative, even if accumulated earnings and profits is positive.
• B) A distribution will only be a dividend if total earnings and profits (current plus accumulated) is positive at the time of the distribution.
• C) At a minimum, some portion of the distribution will be a dividend if current earnings and profits for the year are positive, even if accumulated earnings and profits are negative.
• D) A distribution can never be a dividend if current earnings and profits are negative.

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Definitions:

Environments

The setting or circumstances in which a person, animal, or plant grows or functions.

Nature

the physical world collectively, including plants, animals, the landscape, and other features and products of the earth as opposed to humans or human creations.

Nurture

Nurture refers to the influence of environmental factors, including education, culture, and life experiences, on the development and behavior of an individual, in contrast to genetically inherited traits.

Biological Influences

Biological influences are factors stemming from an organism's physiology and genetics that affect its behavior, development, and functioning.