Asked by Jackson Willis on Jul 01, 2024
Verified
A restriction/appropriation of retained earnings
A) decreases total assets
B) increases total retained earnings
C) decreases total retained earnings
D) has no effect on total retained earnings
Retained Earnings
The cumulative amount of net income earned by a company that is kept or retained within the company for future use, rather than being paid out as dividends.
Total Assets
The sum of all assets owned by a company, including both current and non-current assets, as represented on the balance sheet.
Appropriation
The process of setting aside funds for a specific use or purpose by a company, organization, or government.
- Understand the accounting for and effects of restrictions/appropriations of retained earnings.
Verified Answer
Learning Objectives
- Understand the accounting for and effects of restrictions/appropriations of retained earnings.
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