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Which of the following statements is true? A. Both appropriations and restrictions of retained earnings require journal entries. B. Restrictions on retained earnings must be

Which of the following statements is true?

A. Both appropriations and restrictions of retained earnings require journal entries.

B. Restrictions on retained earnings must be journalized, but appropriations are usually reported in notes to the financial statements.

C. No journal entries are needed to appropriate or restrict retained earnings.

D. Appropriations of retained earnings require journal entries, but restrictions on retained earnings are usually reported in notes to the financial statements.

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