Indicate whether each of the following statements is true or false.
1. An appropriation of Retained Earnings limits the amount available for dividends
2. An appropriation of Retained Earnings increases the total amount of Retained Earnings
3. An appropriation of Retained Earnings has no effect on the income statement
4. One reason for an appropriation of Retained Earnings is that there may be restrictive covenants in debt agreements
5. Appropriating Retained Earnings is considered an asset exchange transaction

Question

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The Answer of Indicate whether each of the following statements is true or false.
1. An appropriation of Retained Earnings limits the amount available for dividends
2. An appropriation of Retained Earnings increases the total amount of Retained Earnings
3. An appropriation of Retained Earnings has no effect on the income statement
4. One reason for an appropriation of Retained Earnings is that there may be restrictive covenants in debt agreements
5. Appropriating Retained Earnings is considered an asset exchange transaction

Indicate Whether Each of the Following Statements Is True or False