Which of the following statements is true concerning appropriations of retained earnings? Appropriations do not reduce total retained earnings. The only proper way to eliminate an appropriation of retained earnings after it has served its purpose is to revert to the unappropriated retained earnings. When treasury shares are purchased, retained earnings must be appropriated equal to the cost of the treasury shares. All of these statements are true concerning appropriations of retained earnings. A dividend which is a return to shareholders of a portion of their original investment is liquidating dividend patronage dividend Liability dividend Participating dividend