Select the Statement That Is Incorrect Concerning the Appropriations of Retained

Select the statement that is incorrect concerning the appropriations of retained earnings.

A) Appropriations of retained earnings do not change the total amount of stockholders' 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.
D) Appropriations of retained earnings can be made at the discretion of the board of directors.