Which of the Following BEST Describes the Appropriation of Retained

Multiple Choice

Which of the following BEST describes the appropriation of retained earnings?

A) Limiting company transactions in order to boost earnings and profits
B) Designating certain amounts of retained earnings for cash dividends to be paid out to shareholders
C) Earmarking certain amounts for specific business purposes, such as for growth or expansion projects
D) Restricting cash dividends or share buy- backs so that the company maintains adequate levels of equity