Question
On September 1, Year 1, Orville Corporation has unrestricted Retained Earnings of $8,500,000, Appropriated Retained Earnings of $5,500,000, Cash of $10,000,000, and Accounts Payable of
On September 1, Year 1, Orville Corporation has unrestricted Retained Earnings of $8,500,000, Appropriated Retained Earnings of $5,500,000, Cash of $10,000,000, and Accounts Payable of $2,000,000. What is the maximum amount that can be used for cash dividends?
Multiple Choice
$10,000,000
$8,500,000
$11,000,000
$3,000,000
In accordance with restrictive debt covenants, Maynard Company appropriated $20,000 of retained earnings. How would the appropriation affect the financial statements?
Multiple Choice
Decease retained earnings and increase appropriated retained earnings for $20,000.
Decrease appropriated retained earnings and increase retained earnings for $20,000.
Decrease appropriated retained earnings and decrease cash for $20,000.
No entry would be required.
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Eco Management And Auditing A Practical Guide To EC Regulations
Authors: Joseph Tanega
1st Edition
1859070094, 978-1859070093
