The "cash flow test" for the payment of dividends and other distributions is also known as the:
A) equity insolvency test.
B) balance sheet test.
C) surplus test.
D) net assets test.

Question

Quizplus · Accepted Answer

The "cash flow test" is also known as the equity insolvency test, which assesses whether a company can pay its debts as they come due in the ordinary course of business.

The "Cash Flow Test" for the Payment of Dividends and Other