Which of the Following Statements Is True

question 85

Multiple Choice

Which of the following statements is true?

• A)Appropriations of retained earnings require journal entries,but restrictions on retained earnings are usually reported in notes to the financial statements.
• B)No journal entries are needed to appropriate or restrict retained earnings.
• C)Both appropriations and restrictions of retained earnings require journal entries.
• D)Restrictions on retained earnings must be journalized,but appropriations are usually reported in notes to the financial statements.

---

Definitions:

Unethical Conduct

Behavior that is not conforming to approved standards of social or professional behavior.

Proactive Strategy

An approach where actions are taken in anticipation of future challenges or opportunities rather than just reacting to events as they happen.

Deny Responsibility

The act of refusing to accept accountability or blame for actions taken or outcomes occurred, potentially to avoid negative consequences or maintain a certain image.

Status Quo

The current state or condition of affairs, often used to describe existing conventions or norms that are maintained over time.