Which of the Following Is Not True Regarding Restrictions on Dividend

question 58

Multiple Choice

Which of the following is not true regarding restrictions on dividend payments?

• A)These restrictions typically arise when loan agreements prohibit the registrant from paying cash dividends without the consent of the lender.
• B)In certain cases,restrictions at a subsidiary-company level exist such that the registrant's subsidiary companies may not transfer amounts to the registrant without the consent of a third party.
• C)Amounts subject to restrictions must be disclosed.
• D)The auditor will typically confirm with shareholders whether there are any side agreements regarding dividend restrictions.

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Definitions:

Momentarily Actuated

Refers to a device or switch that is activated temporarily and returns to its original state after a short interval or when the actuating force is removed.

DINT Signal Path

Refers to a Double Integer signal path, commonly used in industrial control systems for transmitting or processing 32-bit integer data.

Feedback Loop

A system structure that feeds back the output into the input to control the operation or response of a system.