Select the Statement That Is Incorrect Concerning the Appropriations of Retained

question 46

Multiple Choice

Select the statement that is incorrect concerning the appropriations of retained earnings.

• A) Appropriations of retained earnings do not change the total amount of stockholders' equity.
• B) Appropriations of retained earnings reflect funds set aside for a designated purpose, such as plant expansion.
• C) Appropriations of retained earnings can be made as a result of contractual requirements.
• D) Appropriations of retained earnings can be made at the discretion of the board of directors.

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Definitions:

Congressional

Relating to a formal legislative body, often referred to in the context of the United States Congress, which is responsible for making national laws.

Political Action Committee

An organization that collects political donations from its members and uses them to fund campaigns for or against candidates, legislation, or initiatives.

PAC

Political Action Committee, an organization that collects political donations then donates them to campaigns that support their aims.

Issue-Oriented Campaign

A campaign that focuses on specific societal problems or concerns rather than on candidate image or party politics.