If the Board of Directors Authorizes a $100,000 Restriction of Retained

question 166

Multiple Choice

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

• A) decrease total assets and total stockholders' equity.
• B) increase stockholders' equity and decrease total liabilities.
• C) decrease total retained earnings and increase total liabilities.
• D) reduce the amount of retained earnings available for dividend declarations.

---

Definitions:

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays a crucial role in muscle contraction and the modulation of alertness, memory, and learning.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits nerve transmission, playing a role in reducing neuronal excitability.

Glutamate

A major excitatory neurotransmitter in the nervous system involved in memory, learning, and brain development.

Adrenal Gland

A gland above the kidney that produces hormones such as adrenaline and cortisol, which help control heart rate, blood pressure, and other important bodily functions.