The earned surplus test does not permit capital surplus to be used for the payment of dividends.
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Q16: If a "liquidation preference" is provided, preferred
Q17: A company does not have to issue
Q18: A shareholder of one-third of all the
Q19: Treasury stock is issued but not outstanding.
Q20: Dividends are ordinarily paid in cash, but
Q22: A corporation may purchase its own shares
Q23: The earned surplus test for the issuance
Q24: When a corporation issues no par value
Q25: Earned surplus would include undistributed profits, income,
Q26: The board of directors may issue bonds
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