Restricted Earnings Are Usually Disclosed in the Footnotes to the Financial

question 102

Short Answer

Restricted earnings are usually disclosed in the footnotes to the financial statements, but may sometimes be disclosed in a reserve account in the equity section of the balance sheet.

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Definitions:

UCC

The full spectrum of commercial dealings in the United States is under the regulation of the laws within the Uniform Commercial Code.

Writing Requirement

A legal principle that certain kinds of contracts must be in writing to be enforceable.

Statute of Frauds

A legal principle that requires certain types of contracts to be written and signed by the parties involved to be enforceable.

Debt of Another

Debt of another involves liabilities or obligations that one party assumes on behalf of another party, typically through a guarantee or cosigning arrangement.