Chad Associates Retained $825,000 of Net Income in the Business

question 30

Multiple Choice

Chad Associates retained $825,000 of net income in the business in 2013. If $85,000 was appropriated to satisfy the restrictive covenant of a loan agreement, what are the financial statements effects of the appropriation?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Western Planting

The historical process of establishing settlements and colonies in the Western Hemisphere, especially by European powers.

North America

A continent comprising primarily of Canada, the United States, and Mexico, known for its diverse ecosystems and rich cultural heritage.

Spain

A country in southwestern Europe on the Iberian Peninsula, known for its rich history, cultural diversity, and significant contributions to art, literature, and science.