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:

Imitate Behavior

The act of copying or mirroring actions, gestures, or speech patterns of another individual.

Experience-Dependent Brain

The concept that the brain develops and changes in response to sensory, motor, emotional, and cognitive experiences.

Vaccinated

The status of having received a vaccine, which stimulates the body's immune response against specific diseases.

Visual Acuity

The ability of the eye to see and distinguish fine details clearly.