Which of the Following Statements Is True When Appropriating Retained

question 104

Multiple Choice

Which of the following statements is true when appropriating retained earnings?

• A) Appropriating retained earnings will increase the number of shares of stock available.
• B) Appropriating retained earnings will allow the corporation to use its assets for dividends.
• C) Appropriating retained earnings will increase cash and other assets.
• D) Appropriating retained earnings will divide the retained earnings into two categories.

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Definitions:

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response of a firm to changes in market conditions.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Average Variable Cost

The total variable cost divided by the quantity of output produced.

Output

The amount of goods or services produced by a company, sector, or economy.