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The Purpose of a Retained Earnings Appropriation Is to Inform

Question 76

Multiple Choice

The purpose of a retained earnings appropriation is to inform readers of the balance sheet that


A) the appropriated amount is unavailable for dividends.
B) such an appropriation is required to pay corporate income taxes.
C) an appropriation is needed because the corporation expects a net loss for the year.
D) an appropriation is needed because the corporation is involved in a lawsuit.

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