Asked by
RicoGen Bag'z
on Nov 14, 2024Verified
Restricting retained earnings for the cost of treasury stock purchased is a
A) contractual restriction.
B) legal restriction.
C) stock restriction.
D) voluntary restriction.
Treasury Stock
Treasury stock consists of shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the open market.
Voluntary Restriction
Voluntary restriction refers to limitations or constraints that an organization chooses to impose on itself, often related to its operations or the use of its assets, not mandated by external regulations.
- Understand the importance and effects of retained profits, along with adjustments and restrictions, in the dispersal of dividends.
Verified Answer
KA
Learning Objectives
- Understand the importance and effects of retained profits, along with adjustments and restrictions, in the dispersal of dividends.