Which of the Following Statements Is True When Appropriating Retained

question 104

Multiple Choice

Which of the following statements is true when appropriating retained earnings?

• A) Appropriating retained earnings will increase the number of shares of stock available.
• B) Appropriating retained earnings will allow the corporation to use its assets for dividends.
• C) Appropriating retained earnings will increase cash and other assets.
• D) Appropriating retained earnings will divide the retained earnings into two categories.

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Definitions:

UCC

The Uniform Commercial Code (UCC) represents a detailed collection of statutes that regulate all commercial dealings within the United States.

After-Acquired Property

Property acquired by a debtor after the security arrangement is made.

Security Agreement

A legal document that secures an interest in collateral owned by the debtor for the benefit of a creditor in the event of default.

Debtor

An individual or entity that owes money to another party, often a lender or creditor.