Respuesta :
Regular dividends are declared out of retained earnings.
The correct option is C.
What is retained earnings?
The cumulative net income of a corporation that is kept on hand by the corporation at a specific time, as at the conclusion of the reporting period, is known as retained earnings.
Retained earnings are the remaining earnings a business has after paying all of its direct and indirect expenses, income taxes, and dividends to shareholders. This is the equity stake in the company that can be used, for example, to fund marketing, R&D, and new machinery purchases.
What is Regular dividends?
Regular Dividends, singular regular dividends (finance) a dividend that is declared by the company's issuer and is intended to be paid on common shares on a regular basis, usually quarterly, in equal quantities during the course of the year.
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I understand that the question you are looking for is:
Regular dividends are declared out of _____.
(a) common stock
(b) treasury stock
(c) retained earnings
(d) paid-in capital in excess of par.
