Which of the Following Statements Is TRUE

question 80

Multiple Choice

Which of the following statements is TRUE?

• A) Restrictions on retained earnings require adjusting journal entries.
• B) Restrictions on retained earnings are usually reported in the notes to the financial statements.
• C) Restrictions on retained earnings are disclosed on the income statement.
• D) Restrictions on retained earnings are designed to maximize dividends paid to shareholders.

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Definitions:

Infertility

The inability to conceive a child after trying for a significant amount of time or the inability to carry a pregnancy to full term.

Semi-open Adoption

A type of adoption where there is some level of contact or exchange of information between the adoptive and biological parents, but direct communication is typically mediated or facilitated through a third party.

Biological Parent

A parent who has contributed to the genetic constitution of a child.

Economic Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.