If the Board of Directors Authorizes a $250,000 Restriction of Retained

question 44

Multiple Choice

If the board of directors authorizes a $250,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

• A)decrease total assets and total shareholders' equity.
• B)increase shareholders' 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:

Mind-Body Problem

The problem of how mental events (pains, thoughts, feelings) are related to the body—in particular, the brain.

Functionalism

The theory that mental events are identical to certain processes in the brain but that similar processes in another medium (like a computer) would have similar mental manifestations.

Identity Theory

A philosophical stance proposing that mental states are identical to brain states, linking psychology and neuroscience in understanding the mind.

Behaviorism

A branch of psychology that focuses on observable behaviors, suggesting that all behaviors are acquired through conditioning.