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

question 152

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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Definitions:

Labia Majora

The larger outer folds of skin that enclose and protect the other external reproductive organs in females.

Cervical Canal

The narrow passage forming the lower part of the uterus, connecting the uterine cavity with the vagina.

Anatomical Position

The standard reference position for the body used in anatomy to describe the locations of structures, where the body is upright, facing forward, arms at the sides with palms facing forward.

External Os

The opening of the cervix that leads into the vagina in the female reproductive system.