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A retained earnings appropriation can be used to:

A. Absorb a fire loss when a company is self-insured.

B. Provide for a contingent loss that is probable and reasonable.

C. Smooth periodic income.

D. Restrict earnings available for dividends.

Accounting Auditing Banking
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Question ajoutée par Utilisateur supprimé
Date de publication: 2015/02/27
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Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

D. Restrict earnings available for dividends.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option D >>>>>>>>>>>>>>>>>  Restrict earnings available for dividends.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer D is correct answer

Khurram Shaukat Memon
par Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

Appropriation of retained earnings is restriction imposed by management to limit availability of  funds for dividends, and it is done for a particular purpose. Well option (B) may befit the restriction.

Sara Naeem
par Sara Naeem , Trainee Finance officer , Wah Brass Mill

go with Sir Mir Mujtaba Ali and Sir Krishna..thanks for inviting me.

Ezzidin Ibrahim
par Ezzidin Ibrahim , Financial Controller , Karim Food Industries

B. Provide for a contingent loss that is probable and reasonable.

Muhammad Imran
par Muhammad Imran , Head of Accounts & Company Secretary , Fauji Infraavest Foods Limited

A. is correct: Absorb a fire loss when a company is self-insured

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