the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action - to O increase stockholders' equity and decrease total liabilities. O decrease total retained earnings and increase total liabilities. decrease total assets and total stockhold' equity. O reduce the amount of retained earnings available for dividend declarations.

Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
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Chapter15: Investments And Fair Value Accounting
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Ch14 Homework $22
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If the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action
is to
O increase stockholders' equity and decrease total liabilities.
O decrease total retained earnings and increase total liabilities.
O decrease total assets and total stockholde' equity.
O reduce the amount of retained earnings available for dividend declarations.
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Transcribed Image Text:Ch14 Homework $22 Question 16 of 20 > -/1 View Policies Current Attempt in Progress If the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action is to O increase stockholders' equity and decrease total liabilities. O decrease total retained earnings and increase total liabilities. O decrease total assets and total stockholde' equity. O reduce the amount of retained earnings available for dividend declarations. eTextbook and Media Attempts: 0 of 2 used Submit Answer Save for Later @ %23 24 3 4. e C m alt alt !!!
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