Retained Earnings Are Often Appropriated While the Bonds Are Outstanding

question 100

Multiple Choice

Retained earnings are often appropriated while the bonds are outstanding. Which of the following is a reason for the appropriation?

• A)Corporation management wants to protect the bondholders.
• B)The bond underwriters always require it.
• C)Tax law requires it.
• D)The buyers require it.

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Reliability and Validity

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Company Sell

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