Payments made by a ﬁrm to its owners from sources other than current or accumulated earnings are called:

Question

Quizplus · Accepted Answer

Dividends are payments made from current or accumulated earnings, while share repurchases and stock splits do not involve direct payments to owners. Payments-in-kind are payments made in the form of goods or services, rather than cash. Therefore, the best choice is B - distributions, which refer to payments made to owners from sources other than current or accumulated earnings, such as proceeds from asset sales or borrowing.

Payments Made by a ﬁRm to Its Owners from Sources