Dividends Can Be Paid from Which of the Following Accounts

question 11

Multiple Choice

Dividends can be paid from which of the following accounts:

• A)retained profits
• B)asset revaluation reserve
• C)paid-up capital
• D)A and B only

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Definitions:

Income-Splitting

A tax strategy used by families or partnerships to divide income amongst members to lower the overall tax liability by utilizing lower tax brackets.

Back Pay

Compensation owed to an employee for a past period, typically due to underpayment or wage disputes.

Tax Purposes

Motivations or reasons related to the calculation, payment, or avoidance of taxes.

Illegal Contracts

Agreements that are not enforceable by law due to their involvement in illegal activities or because they contravene public policy.