All of the Following Statements Concerning Appropriation of Retained Earnings

question 37

Multiple Choice

All of the following statements concerning appropriation of retained earnings are true EXCEPT

• A) the practice of appropriating retained earnings is unusual today.
• B) stockholders generally expect all unappropriated retained earnings to be distributed in the form of dividends.
• C) it is necessary to advise balance sheet readers that retained earnings is not totally available for dividends.
• D) simply noting the restriction of retained earnings is not sufficient.

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Definitions:

Private Property

Legal designation for the ownership of property by non-governmental legal entities or individuals, allowing for the exclusive use and control of the property.

Interest

A charge for borrowed money, usually a percentage of the borrowed sum.

Extramarital Affairs

Romantic relationships or sexual liaisons that occur outside of marriage and are typically considered infidelity.

Naming Taboo

A prohibition or restriction on using particular names or words, often due to cultural, religious, or social reasons.