Which of the Following in Not True About Retained Earnings

question 102

Multiple Choice

Which of the following in not true about retained earnings?

• A)Declaring a stock split will have no effect on retained earnings.
• B)Appropriating retained earnings will have no effect on total stockholders' equity.
• C)Distributing stock dividends will have no effect on retained earnings.
• D)Declaring cash dividends will increase retained earnings.

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Definitions:

Parity Concept

A principle in economics that suggests prices, incomes, or interest rates should equalize across different markets or countries, adjusted for exchange rates.

Farm Commodities

Agricultural products such as grains, milk, cattle, fruits, and vegetables that are usually sold to processors, who use the products as inputs in creating food products.

Prices-Paid Index

An economic indicator that tracks changes in the prices paid by manufacturers for inputs, raw materials, and services.

U.S. Farm Policies

U.S. Farm Policies encompass a range of federal laws and regulations designed to control agricultural production, stabilize food prices, and ensure food safety and quality in the United States.