If the Board of Directors Authorizes a $250,000 Restriction of Retained

Multiple Choice

If the board of directors authorizes a $250,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

A) decrease total assets and total shareholders' equity.
B) increase shareholders' equity and to decrease total liabilities.
C) decrease total retained earnings and increase total liabilities.
D) reduce the amount of retained earnings available for dividend declarations.