Which of the Following Statements Best Describes the Role of Current

question 9

Multiple Choice

Which of the following statements best describes the role of current and accumulated earnings and profits in determining if a distribution is a dividend?

• A) A distribution will only be a dividend if total earnings and profits (current plus accumulated) is positive at the time of the distribution.
• B) A distribution can never be a dividend if current earnings and profits are negative.
• C) A distribution will be a dividend if current earnings and profits for the year are positive, even if accumulated earnings and profits are negative.
• D)A distribution will never be a dividend if current earnings and profits for the year are negative, even if accumulated earnings and profits is positive.

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Definitions:

Professional Communication

The exchange of information and ideas in a clear, concise, and respectful manner within a workplace or business context.

Direct Approach

The direct approach in communication involves stating the main point or purpose at the beginning, followed by supporting details, often used in business and technical writing.

Business Communication

The sharing of information between people within an organization that is performed for the commercial benefit of the organization.

Skeptical Audience

A group of listeners or viewers who are inclined to doubt or question the validity of the information presented to them.