A corporation that only has accumulated earnings and profits cannot make a dividend distribution.

Name: A corporation that only has accumulated earnings and profits cannot make a dividend distribution.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

A corporation with accumulated earnings and profits can make a dividend distribution; the presence of accumulated earnings and profits indicates that the corporation has retained earnings available for distribution to shareholders.

A Corporation That Only Has Accumulated Earnings and Profits Cannot