Which of the Following Best Describes the Appropriation of Retained

question 4

Multiple Choice

Which of the following best describes the appropriation of retained earnings?

• A)restricting a certain amount of retained earnings for expansion or contingencies
• B)cash set aside for expansion
• C)designating certain amounts of retained earnings for cash dividends to be paid out to shareholders
• D)limiting company transactions in order to boost earnings and profits

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Definitions:

Net Increase

The amount by which something grows or rises, subtracting decreases from increases over a period of time.

Financing Activities

Transactions and events that affect long-term liabilities and equity of an organization, such as issuing stock or obtaining a loan.

Financing

The act of providing funds for business activities, making purchases, or investing.

Operations

The day-to-day activities involved in running a business, including production, sales, and administration, aimed at generating profits.