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.
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
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 15.5CP
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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
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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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