Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Restriction of retained earnings
A)Similar to an S corporation, but no limit on number of owners.
B)Net income as a percentage of average book value.
C)Paid-in capital and/or retained earnings affected when sold.
D)Preferred practice is to disclose in the notes to the financial statements.
E)Used in evaluating stock performance.

Question

Quizplus · Accepted Answer

Restriction of retained earnings refers to limitations placed on the amount of earnings that can be distributed to shareholders, often disclosed in the notes to financial statements to inform investors and stakeholders of these limitations.

Listed Below Are Five Terms Followed by a List of Phrases