A board of directors may declare a dividend higher than the balance of the retained earnings account, as long as the cash balance is adequate to pay the dividends.

Name: A board of directors may declare a dividend higher than the balance of the retained earnings account, as long as the cash balance is adequate to pay the dividends.
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A board of directors cannot declare a dividend higher than the retained earnings balance, as dividends are typically paid out of retained earnings, not just available cash.

A Board of Directors May Declare a Dividend Higher Than