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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 added by Deleted user
Date Posted: 2015/02/27
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Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

D. Restrict earnings available for dividends.

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

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

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

answer D is correct answer

Khurram Shaukat Memon
by 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 Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

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

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

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

Muhammad Imran
by 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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