Appropriations to retained earnings are

Question

Appropriations to retained earnings are
A. recorded as an contra-asset.
B. disclosed in the notes to the financial statements.
C. recorded as a contra-liability.
D. a contra-stockholders’ equity.

Answer 1

The correct choice is B.

Appropriations, also called reserves or restrictions, are reported in notes to the financial statements and not as an account. The rest of this drivel is required for my answer to be approved.