Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)An appropriation of retained earnings limits the amount available for dividends.
_____ b)Appropriating retained earnings is considered an asset exchange transaction.
_____ c)An appropriation is recorded as a debit to the appropriated retained earnings account and a credit to retained earnings.
_____ d)One reason for an appropriation of retained earnings is that there may be restrictive covenants in credit agreements.
_____ e)An appropriation has no effect on the accounting equation.