Question

Which of the following statements is​ true?

(A) Both appropriations and restrictions of retained earnings require journal entries.
(B) Restrictions on retained earnings must be​ journalized, but appropriations are usually reported in notes to the financial statements.
(C) No journal entries are needed to appropriate or restrict retained earnings.
(D) Appropriations of retained earnings require journal​ entries, but restrictions on retained earnings are usually reported in notes to the financial statements.

Answer 1

The correct answer is

(D) Appropriations of retained earnings require journal​ entries, but restrictions on retained earnings are usually reported in notes to the financial statements.

good luck