Restrictions on Retained Earnings

question 139

Multiple Choice

Restrictions on retained earnings:

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

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Definitions:

Parallel Cousins

The children of a father's brother or a mother's sister, considered in some cultures to be nearly as closely related as siblings.

Cross-Cousins

The children of one's parent's sibling of the opposite gender, considered as potential marriage partners in some cultures.

Descent Cousins

Cousins who are part of the same family lineage or bloodline, emphasizing the connection through common ancestors.

Social Class

A division of a society based on social and economic status, where individuals are grouped by criteria such as occupation, income, wealth, education, and social network.