the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action - to O increase stockholders' equity and decrease total liabilities. O decrease total retained earnings and increase total liabilities. decrease total assets and total stockhold' equity. O reduce the amount of retained earnings available for dividend declarations.

the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action - to O increase stockholders' equity and decrease total liabilities. O decrease total retained earnings and increase total liabilities. decrease total assets and total stockhold' equity. O reduce the amount of retained earnings available for dividend declarations.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter13: Valuation: Earnings-based Approach

Section: Chapter Questions

Problem 18PC

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