Dividend Payments Cannot Exceed the Balance Sheet Item "Retained Earnings

question 15

Multiple Choice

Dividend payments cannot exceed the balance sheet item "Retained earnings." This is known as the _____. 

• A)stock split rule
• B)free cash flow rule
• C)constant payout rule
• D)impairment of capital rule
• E)dividend irrelevance rule

---

Definitions:

Eversion

The movement of the sole of the foot away from the median plane.

Ankle Joint

The joint where the tibia, fibula, and the talus of the foot meet, allowing for movement such as walking and running.

Gomphoses

A type of fibrous joint that anchors a tooth to its socket in the jawbone.

Dense Connective Tissue

A type of connective tissue with closely packed collagen fibers, providing strength and stiffness to structures like tendons and ligaments.