A Restriction of Retained Earnings Is Most Likely to Be

question 89

Multiple Choice

A restriction of retained earnings is most likely to be required by

• A) incurring a net loss in the current year.
• B) incurring a net loss in the prior year.
• C) purchasing treasury stock.
• D) reissuing treasury stock.

Recognize the impact of overstated beginning inventory on cost of goods sold and net income.

Understand various methods of inventory valuation, their advantages, and application contexts.

Know how to assign costs to inventory and cost of goods sold for different inventory valuation methods.

Understand the basic principles and methods of optimization including integer, nonlinear, and mixed-integer linear optimization models.