If the Board of Directors Authorizes a $100,000 Restriction of Retained

question 166

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 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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Setting text or objects to be flush with the right margin of a page, document, or other display area, creating a tidy and organized look.

Text Box

A graphical element in user interfaces and documents that allows users to input text data into a designated area.