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    Accounting Understanding and Practice
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    Exam 3: The Development of Financial Reporting
  5. Question
    Which Accounting Principle Stipulates That Dividends Should Only Be Paid
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Which Accounting Principle Stipulates That Dividends Should Only Be Paid

Question 33

Question 33

Multiple Choice

Which accounting principle stipulates that dividends should only be paid out of profit,not by issuing new share capital?


A) Revenue recognition
B) Matching
C) Capital maintenance
D) Prudence

Correct Answer:

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