Indicate whether each of the following statements is true or false. ________ a) An appropriation of retained earnings limits the amount available for dividends.________ b) Appropriating retained earnings is considered an asset exchange transaction.________ c) An appropriation is recorded as a decrease to the appropriated retained earnings account and an increase to retained earnings.________ d) One reason for an appropriation of retained earnings is that there may be restrictive covenants in credit agreements.________ e) An appropriation has no effect on the accounting equation.
What will be an ideal response?
a) T b) F c) F d) T e) T
a) This is true. Only unappropriated retained earnings are available for dividends.
b) This is false. Appropriating retained earnings is a claims exchange transaction.
c) This is false. The appropriation is recorded as a decrease to retained earnings and an increase to appropriated retained earnings.
d) This is true. Some debt covenants require the appropriation of retained earnings.
e) This is true. The appropriation does not affect total stockholders' equity.
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The provision of outputs for an organization in an environmentally acceptable manner occurs via _____________.
What will be an ideal response?
Consolidated financial statements are required by GAAP in certain circumstances. This information can be very useful to stockholders and creditors. Yet, there are limitations to these financial statements for which the users must be aware. What are at least three (3) limitations of consolidated financial statements?
What will be an ideal response?
Cloud resources are not confined to a specific platform or operating system.
Answer the following statement true (T) or false (F)
Which of the following statements about the condominium commercial-unit owners coverage form is (are) true?
I. It provides coverage for the unit owner's proportionate financial interest in the condominium building. II. It provides coverage for the business personal property of the unit owner. A) I only B) II only C) both I and II D) neither I nor II