Indicate Whether Each of the Following Statements Is True or False

question 27

Essay

Indicate whether each of the following statements is true or false.
_____ a) An appropriation of retained earnings limits the amount available for dividends.
_____ b) Appropriating retained earnings is considered an asset exchange transaction.
_____ c) An appropriation is recorded as a decrease to the appropriated retained earnings account and an increase to retained earnings.
_____ d) One reason for an appropriation of retained earnings is that there may be restrictive covenants in credit agreements.
_____ e) An appropriation has no effect on the accounting equation.

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Definitions:

Reinforce Behaviour

The process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Negative Reinforcement

A behavioral psychology principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated in the future.

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often used in behavioral conditioning.

Positive Reinforcement

A technique in behaviorism that encourages a certain behavior by following it with a positive stimulus or reward.