A Restriction/appropriation of Retained Earnings

question 152

Multiple Choice

A restriction/appropriation of retained earnings

• A) decreases total assets
• B) increases total retained earnings
• C) decreases total retained earnings
• D) has no effect on total retained earnings

---

Definitions:

Financial Affairs

The management and analysis of money, investments, and other financial instruments by individuals or entities.

Pledged Assets

Assets that are promised as security for the repayment of a loan.

Monetary

Relating to money or currency, particularly in terms of monetary policy or monetary economics.

Collateral

An asset offered as security for repayment of a loan, forfeitable in the event of default.