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:

Straight Line Amortization

A method of allocating the cost of an intangible asset evenly over its useful life.

Unrealized Profits

are profits that have been earned but not yet realized through a transaction, such as an increase in value of unsold stocks.

After-Tax Dollar Value

The amount of money left after federal, state, and other governmental taxes have been deducted.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.