12. Select the statement that is incorrect concerning the appropriations of retained earnings. a. Appropriations of retained earnings do not change the total amount of shareholders' equity. O b. Appropriations of retained earnings reflect funds set aside for a designated purpose, such as plant expansion. c. Appropriations of retained earnings can be made as a result of contractual requirements. O d. Appropriations of retained earnings can be made at the discretion of the board of directors.

12. Select the statement that is incorrect concerning the appropriations of retained earnings. a. Appropriations of retained earnings do not change the total amount of shareholders' equity. O b. Appropriations of retained earnings reflect funds set aside for a designated purpose, such as plant expansion. c. Appropriations of retained earnings can be made as a result of contractual requirements. O d. Appropriations of retained earnings can be made at the discretion of the board of directors.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

12. Select the statement that is incorrect concerning the appropriations
of retained earnings.
a. Appropriations of retained earnings do not change the total amount of
shareholders' equity.
b. Appropriations of retained earnings reflect funds set aside for a designated
purpose, such as plant expansion.
c. Appropriations of retained earnings can be made as a result of contractual
requirements.
O
d. Appropriations of retained earnings can be made at the discretion of the board of
directors.

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