A resolution by the board of directors to set aside a part of the credit balance of the retained earnings account for a specific use is called

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When the board of directors sets aside a part of the credit balance of the retained earnings account for a specific use, it is called an appropriation. This is a formal action taken by the board to designate a portion of the company's earnings for a specific purpose, such as payment of dividends or investment in new equipment. Earnings retained in the business refers to the portion of profits that are not distributed to shareholders as dividends, while recapitalization involves changing the structure of a company's capital. A deficit refers to a negative balance in the retained earnings account.

A Resolution by the Board of Directors to Set Aside