Which of the Following Statements Is TRUE

question 81

Multiple Choice

Which of the following statements is TRUE?

• A) Appropriations of retained earnings require journal entries, but restrictions on retained earnings do not.
• B) No journal entries are needed to either appropriate or restrict retained earnings.
• C) Both appropriations and restrictions of retained earnings require journal entries.
• D) Restrictions on retained earnings must be journalized, but appropriations do not need to be journalized.

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Definitions:

Sales Increase

A rise in the volume or quantity of products or services sold by a business.

Manufacturer

An entity or company that produces goods using raw materials and labor, often for use in other industries or for sale to consumers.

Product Placement

The practice of intentionally placing products in movies, shows, or other media content for promotional purposes.

Promotional Deal

An offer designed to stimulate purchases through special discounts, coupons, or other incentives.