Restrictions on Retained Earnings Can Be

question 76

Multiple Choice

Restrictions on retained earnings can be:

• A) Limits that identify how much of the retained earnings balance is not available for dividends or the repurchase of shares
• B) Statutory limits set by government.
• C) Due to loan agreements.
• D) Set by a corporation's directors in order to limit dividends and maintain cash.
• E) All of these answers are correct.

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