Accounting rules
A)suggest that companies disclose any restrictions on retained earnings in their financial statement notes.
B)require companies to disclose any restrictions on retained earnings in their financial statement notes.
C)do not require disclosure of any restrictions on retained earnings in the financial statement notes.
D)only require companies to disclose any restrictions on retained earnings during an external audit.

Question

Quizplus · Accepted Answer

Accounting rules require companies to disclose any restrictions on retained earnings in their financial statement notes. This is important information for investors to understand the limitations on the company's ability to use its retained earnings, and to assess the company's financial health and future prospects.

Accounting Rules