When Retained Earnings Are Restricted, Total Retained Earnings

question 107

Multiple Choice

When retained earnings are restricted, total retained earnings

• A)are unaffected.
• B)increase.
• C)decrease.
• D)may increase or decrease.

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Definitions:

Labor

The human effort, both physical and mental, used in the production of goods and services.

Average Product

The quantity of goods produced per unit of input, determined by dividing the overall output by the amount of input used.

Unit Of Input

A measurement of the amount of resources (labor, materials, etc.) used in the production of goods and services.