Which Statements Are True?:
I $\quad$ Dividends Can Not Be Paid Out of Amounts Contributed by Paid

Multiple Choice

Which statements are true?:
I. $\quad$ Dividends can not be paid out of amounts contributed by owners as share capital.
II. $\quad$ Directors must ascertain that the company is solvent before they pay a dividend.
III. $\quad$ As a general rule dividends must only be paid from profits.For this purpose profits includes reserves.
IV. $\quad$ For purposes of paying dividends profits are not limited to the current period.

A) I and II only
B) II only
C) I, II, and IV only
D) I, II, III and IV