Restrictions on Retained Earnings

question 1

Multiple Choice

Restrictions on retained earnings:

• A) may take the form of a voluntary appropriation
• B) must be disclosed by a journal entry
• C) are reported in the liability section of the balance sheet
• D) are only used for tax purposes

---

Definitions:

Continuing Behavior

Persistent actions or activities that an individual keeps doing over a period of time.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to conflicting beliefs, attitudes, or behaviors.

Coaction Effects

The impact on performance of the presence of other people engaged in the same task.

Source Confusion

Source Confusion is a memory error where individuals are unable to recall the true source of a memory, leading to misattribution of the information's origin.