An Appropriation of Retained Earnings of a Significant Amount

question 128

Multiple Choice

An appropriation of retained earnings of a significant amount:

• A) Means that specific assets actually have been set aside for a specific purpose.
• B) provides protection to the stockholders rather than to the creditors.
• C) Can have a significant impact on the total amount of retained earnings when recorded.
• D) Can be used to absorb extraordinary losses directly one of a significant amount.
• E) Should be reversed when the purpose of the appropriation has been achieved.

Assess the effectiveness of formal and informal communication styles in different contexts.

Distinguish between effective and ineffective strategies in emphasizing content in business messages.

Understand the nuances of formal versus conversational language in business communication.

Recognize the use and misuses of rubber stamps in professional emails and letters.

---

Definitions:

Marginal Cost Curves

Graphical representations that show how the cost of producing one additional unit of a good varies as the quantity of output produced changes.

Profit Maximizers

Refers to firms or individuals who alter their production or operational levels to achieve the highest possible profit margins.

Lump Sum Subsidy

A fixed amount of money provided by the government or a body to support a business or market, which does not change with the level of output.

Per-Unit Subsidy

A financial incentive given by the government, reducing the cost of each unit of a good or service to either the producer or consumer.