A restriction/appropriation of retained earnings

A) decreases total assets
B) increases total retained earnings
C) decreases total retained earnings
D) has no effect on total retained earnings

Retained Earnings

The cumulative amount of net income earned by a company that is kept or retained within the company for future use, rather than being paid out as dividends.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, as represented on the balance sheet.

Appropriation

The process of setting aside funds for a specific use or purpose by a company, organization, or government.