The Statement That Is True in Respect of Appropriations Is

question 29

Multiple Choice

The statement that is true in respect of appropriations is:

• A)Some appropriations are a ploy by a company to make it appear to shareholders that the amount available for dividends has been reduced.
• B)Appropriations affect profit determination
• C)Appropriations of retained earnings to specific reserve accounts represent particular assets
• D)None of the statements are true.

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Definitions:

Semi-monthly Payments

Payments that are made twice a month, often on the 1st and 15th, typically in the context of salaries or loans.

Loan to Value Ratio

A financial term used by lenders to express the ratio of a loan to the value of an asset purchased.

Amortized

Relates to spreading payments over multiple periods to gradually eliminate a liability or loan, incorporating both principal and interest components.

Compounded Semiannually

The calculation of interest where the interest earned over a period is added to the principal, and the process is repeated twice a year.