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

question 71

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 to decrease total liabilities.
• C)decrease total retained earnings and increase total liabilities.
• D)reduce the amount of retained earnings available for dividend declarations.

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Definitions:

Social Policies

Guidelines, principles, legislation, and activities that affect the living conditions conducive to human welfare, such as those affecting healthcare, education, and housing.

Philosophical Conservatives

Individuals who emphasize tradition, order, and social stability, advocating for limited government intervention in the economy and society.

Contributory Programs

Government welfare programs that require individuals to contribute through taxes or other payments in order to be eligible for benefits, such as Social Security.

Noncontributory Programs

Government programs that provide welfare benefits not based on the recipients' prior contributions or taxes.