Which of the Following Statements Is Not Correct

question 51

Multiple Choice

Which of the following statements is not correct?

• A)The entry to record the appropriation of retained earnings for warehouse construction includes a debit to Retained Earnings.
• B)Appropriated retained earnings are listed separately on the balance sheet.
• C)When retained earnings are appropriated, cash is set aside for a specific purpose.
• D)Dividends cannot be declared from appropriated retained earnings.

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Definitions:

Common Resources

Resources that are available to all but are susceptible to overuse because of their non-excludable and rivalrous nature, leading to potential depletion or degradation.

Socially Optimal

A state of the market where resources are allocated in the most efficient manner, maximizing the overall benefit to society.

Negative Externality

An economic situation where a third party is negatively affected by the outcome of a transaction or activity, for instance, pollution affecting the health of nearby residents who are not involved in the polluting activity.

Drunk Driving

The act of operating a motor vehicle while the driver's ability to do so is impaired by the effects of consuming alcohol.