A retained earnings restriction would appear in the financial statements under
A)share capital.
B)retained earnings.
C)notes to financial statements.
D)a liability.

Question

Quizplus · Accepted Answer

Retained earnings restrictions are disclosed in the notes to financial statements because they provide detailed information about the nature of the restrictions and their impact on the financial position of the company, which cannot be fully communicated within the balance sheet itself.

A Retained Earnings Restriction Would Appear in the Financial Statements