Which of the Following Would Not Be Shown on the Statement

question 122

Multiple Choice

Which of the following would not be shown on the statement of retained earnings?

• A)Purchase of treasury stock
• B)Appropriations for plant expansion
• C)Declaration of a stock dividend
• D)Declaration of a cash dividend

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Definitions:

Fair Value Adjustment

A financial process that alters the reported value of an asset or liability to reflect its current market value.

Common Stock C

A classification of common stock that may have specific rights, privileges, or restrictions compared to other classes.

Gain on Sale

The financial profit realized from the sale of an asset, which exceeds its purchase price.

Available-for-Sale Securities

Financial assets that are not classified as held-to-maturity or trading securities, and can be sold in the short-term to meet liquidity needs.