Which of following generally does not indicate an unreasonable earnings accumulation?

Question

Quizplus · Accepted Answer

Planned expansion of business facilities is a valid reason for a corporation to accumulate earnings and is not indicative of an unreasonable accumulation. On the other hand, A, C, and D can be considered as indicators of an unreasonable earnings accumulation as they involve using corporate funds for personal benefit, providing loans to shareholders, and investing in non-core activities, respectively.

Which of Following Generally Does Not Indicate an Unreasonable Earnings