FINANCIAL ACCOUNTING LOOSELEAF
FINANCIAL ACCOUNTING LOOSELEAF
2nd Edition
ISBN: 9781119493631
Author: Kimmel
Publisher: WILEY
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Chapter 11, Problem 21Q

(a)

To determine

Retained earnings restriction: It refers to the amount of retained earnings that cannot be distributed as current year dividends rather should be used for unpaid dividends due in the previous years or some debts and obligations that is required to be paid off based on its urgency.

To explain: the purpose of a retained earnings restriction.

(b)

To determine

To identify: the possible causes of retained earnings restrictions.

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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License