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:

Annual Dues

Annual dues are yearly fees paid by members to belong to an organization, club, or group, often providing access to benefits or services.

Southern Pines Golf Club

A golfing venue, potentially real or fictional without additional context, possibly known for its course layout and amenities.

Tickets

Documents or electronic codes that grant the holder a right to admission to an event, travel on a vehicle, or participate in a lottery.

Proceeds Of Estate

The total sum of money or assets that are distributed from an estate after all debts and expenses have been paid.