What Is the Effect of a Corporation Appropriating Retained Earnings

question 69

Multiple Choice

What is the effect of a corporation appropriating retained earnings for the cost of treasury stock purchased?

• A)Contributed capital is overstated.
• B)A portion of retained earnings is restricted from the payment of dividends.
• C)Owner's equity is reduced by the amount of the appropriation.
• D)Income is overstated.

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Definitions:

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