In the absence of evidence to the contrary, all the retained earnings of an entity can be declared as dividends. In order to limit or restrict the payment of dividends, a corporation makes appropriations of retained earnings. Appropriation for treasury shares is what type of retained earnings appropriation? a. Contractual appropriation b. Voluntary appropriation c. Legal appropriation d. Discretionary appropriation

In the absence of evidence to the contrary, all the retained earnings of an entity can be declared as dividends. In order to limit or restrict the payment of dividends, a corporation makes appropriations of retained earnings. Appropriation for treasury shares is what type of retained earnings appropriation? a. Contractual appropriation b. Voluntary appropriation c. Legal appropriation d. Discretionary appropriation

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 4BCRQ

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