Which of the Following Are the Two Financial Requirements That

question 29

Multiple Choice

Which of the following are the two financial requirements that the board of directors must consider when declaring a cash dividend?
i) the retained earnings account has a positive balance greater than the dividend.
Ii) the cash account has a balance greater than the amount of the dividend declared.
Iii) the company's earnings have shown growth for the last two quarters.
Iv) the shareholders have approved the declaration of the cash dividend.

• A)i and iii
• B)i and ii
• C)ii and iv
• D)ii and iii

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Definitions:

Common Carrier

A service or company that is available to the public for transport of goods or people, under the regulation of governmental agencies.

Bailor

The person who temporarily transfers possession of property to another (the bailee) under a bailment agreement.

Common Carrier

A business or service that is available to the public for transportation of people, goods, or messages, under certain regulatory and legal obligations.

Remuneration

Payment or compensation received for services or employment, including allowances, benefits, and bonuses.