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

question 71

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 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:

Unconditional Positive Regard

A concept in psychology that signifies showing complete support and acceptance of a person regardless of what they say or do, especially in therapeutic settings.

Diagnosis

The identification of the nature and cause of an illness or other problem through the examination of the symptoms.

Acceptance

The action of consenting to receive or undertake something offered or the recognition of a situation or condition without attempting to change it.