A Resolution by the Board of Directors to Set Aside

question 82

Multiple Choice

A resolution by the board of directors to set aside a part of the credit balance of the retained earnings account for a specific use is called

• A) earnings retained in the business.
• B) an appropriation.
• C) a recapitalization.
• D) a deficit.

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Definitions:

Libido

A term often used in psychoanalytic theory to denote the energy associated with sexual instincts and desires.

Psychic Energy

In psychoanalytic theory, the energy produced by instinctual drives and libido, considered the driving force behind human behavior and mental processes.

Conflicting Emotions

Experiencing two or more opposing emotions at the same time, leading to feelings of discomfort or confusion.