A restriction/appropriation of retained earnings establishes cash assets that are set aside for a specific purpose.

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A restriction/appropriation of retained earnings is an accounting practice that earmarks a portion of a company's retained earnings for a specific purpose, but it does not involve setting aside actual cash assets. It is more about internal budgeting and financial planning rather than physically allocating cash.

A Restriction/appropriation of Retained Earnings Establishes Cash Assets That Are