Unappropriated Retained Earnings will decrease because of net losses, declarations of cash or stock dividends, and appropriations.

Question

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Unappropriated Retained Earnings represent the portion of net income that has not been distributed as dividends or used for appropriations. Therefore, if a company experiences a net loss or declares dividends or appropriations, the Unappropriated Retained Earnings will decrease.

Unappropriated Retained Earnings Will Decrease Because of Net Losses, Declarations