All of the Following Statements Are True Regarding the Appropriations

question 22

Multiple Choice

All of the following statements are true regarding the appropriations of retained earnings except:

• A)Appropriations of retained earnings restrict retained earnings from future dividend payments.
• B)Appropriations of retained earnings involve the restriction of cash.
• C)Appropriations of retained earnings must be decided upon by the board of directors.
• D)Appropriations of retained earnings do not change the amount of total stockholders' equity.

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Definitions:

Mental Activities

Tasks and processes that involve the mind, such as thinking, reasoning, remembering, and imagining.

Assimilation

Interpreting our new experiences in terms of our existing schemas.

Accommodation

In psychology, the process of modifying cognitive schemas to incorporate new information.

Existing Theories

The body of current hypotheses, ideas, and concepts that explain phenomena in a particular field of study.