Question

cash dividends and treasury stock purchases​ . question content area bottom part 1 a. make more resources available to pay liabilities b. may be limited by creditors to ensure that the company maintains a minimum level of​ stockholders' equity c. represent cash payments that are made to ensure higher reported profits d. may be restricted as a way to lower federal income tax expense

Answer 1

B. is correct answer
May be limited by creditors to ensure that the company maintains a minimum level of​ stockholders' equity  

What are cash dividends?

A cash dividend is a sum of money distributed on a regular basis to stockholders by a firm (as opposed to in stock or any other form) Cash dividends are frequently distributed on a regular schedule, like monthly or quarterly, but they can also be one-time payments, as after a settlement, on occasion.

What is treasury stock?

Treasury stock, commonly referred to as treasury shares or reacquired stock, denotes previously outstanding stock that the issuing business has acquired from stockholders. The overall number of outstanding shares on the open market declines as a result.

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