15) For the past 10 years, JFINEXCorporation has been paying 500,000 individends. Given the current pandemic, itwants to pay 500,000, but can't. Which ofthe following is not a reason why it can'tcontinue its dividend policy?Liabilities exceed its assetsA) "Cash balance is less than 500,000"B) "Year-end retained earnings balance isless than 500,000"C) "Net income is less than 500,000 thisYear"D) None of the above

Answer: Dividend is paid by company from its retained earnings.

Answered: 15) For the past 10 years, JFINEX…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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15) For the past 10 years, JFINEX Corporation has been paying 500,000 in dividends. Given the current pandemic, i wants to pay 500,000, but can't. Which the following is not a reason why it can't