Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A)E&P consists of two basic parts: current E&P and accumulated E&P.
• B)A corporation can make taxable dividend distributions if it has current E&P, notwithstanding the fact that it may have a deficit in accumulated E&P.
• C)A dividend is defined as paid out of either current or accumulated E&P.
• D)The presumption is that every distribution is first out of accumulated E&P and then from current E&P.

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Definitions:

Backtracking

A problem-solving technique that involves keeping track of where in the solving process assumptions are made so that they may be changed later.

Logic Problem

A puzzle or question that requires reasoning and critical thinking skills to solve.

Provisional Assumptions

Temporary hypotheses or beliefs that are accepted until further evidence can confirm or refute them.

Generate-and-test

A problem-solving and scientific discovery strategy that involves generating possible solutions and then testing them to see if they solve the problem.