Question:
What are the three classifications of restrictions of retained earnings, and how are such restrictions normally reported on the financial statements?
Financial Statements
The financial statements usually are comprised of the trading account, profit and loss account, the balance sheet, and the cash flow statement. The statements are required to be prepared for evaluating the financial health and wealth of the company.
See Also
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The three classifications of restrictions of retained earnings are legal, contractual, and discretionary earnings.
The state law might require a...
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