Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.

Name: Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Restricted retained earnings are funds that cannot be distributed as dividends to shareholders, regardless of whether they are preferred or common stockholders, as they are reserved for specific purposes such as legal requirements or future investments.

Restricted Retained Earnings Are Available for Preferred Stock Dividends but Unavailable