Which of the Following Statements Is TRUE

question 226

Multiple Choice

Which of the following statements is TRUE?

• A) Appropriations of retained earnings require journal entries, but restrictions on retained earnings are usually reported in notes to the financial statements.
• B) No journal entries are needed to appropriate or restrict retained earnings.
• C) Both appropriations and restrictions of retained earnings require journal entries.
• D) Restrictions on retained earnings must be journalized, but appropriations are usually reported in notes to the financial statements.

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Definitions:

Restructuring

A reorganization of a problem that can facilitate its solution; a characteristic of creative thought.

Reorganizing

The process of arranging or structuring something again or differently, often to improve efficiency or clarity.

Problem

A situation, question, or matter that needs to be solved or resolved through thought, discussion, or action.

Analogy

A cognitive process of transferring information or meaning from a particular subject (the analogue or source) to another (the target), also a linguistic expression corresponding to such a process.