Asked by mackenzie maison on May 21, 2024
Verified
The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.
Appropriated Retained Earnings
Portion of retained earnings that a company reserves to be used for specific purposes or to meet future obligations.
Financial Statements
Financial statements are comprehensive reports created from a company's accounting records, presenting the financial performance and position at a specific point in time.
- Acknowledge the importance of limitations on retained earnings and the correct reporting of modifications to retained earnings.
Verified Answer
AN
Alungile NqwenyanaMay 28, 2024
Final Answer :
True
Explanation :
Restricted/appropriated retained earnings represent funds that are not currently available for general use by the corporation and should be disclosed in the notes to the financial statements for transparency.
Learning Objectives
- Acknowledge the importance of limitations on retained earnings and the correct reporting of modifications to retained earnings.
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