Which One of the Following Would Most Likely Require a Restriction

question 70

Multiple Choice

Which one of the following would most likely require a restriction of retained earnings?

• A) The sale of a plant asset
• B) A sale of treasury stock
• C) A declaration of cash dividends
• D) An appropriation declared by the Board of Directors

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Definitions:

UCC

The Uniform Commercial Code, a set of laws governing sales and commercial transactions in the United States.

Perfection

A legal process that establishes a secured party's interest in the collateral, giving priority over other third-party claims.

Exoneration

The act of being cleared or absolved from blame, responsibility, obligation, or, specifically in legal terms, criminal charges.

Surety

is a guarantee, usually in the form of a bond, where one party guarantees the debts or obligations of another party to a third party.