GAQM ISO-LCSM-001 Q&A - in .pdf

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  • Exam Code: ISO-LCSM-001
  • Exam Name: ISO/IEC 27032 - Lead Cyber Security Manager
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  • Exam Code: ISO-LCSM-001
  • Exam Name: ISO/IEC 27032 - Lead Cyber Security Manager
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NEW QUESTION: 1
At December 31, 1996, Eaton Corp. reported $1,750,000 of appropriated retained earnings for the construction of a new office building, which was completed in 1997 at a cost of $1,500,000. In 1997, Eaton appropriated $1,200,000 of retained earnings for the construction of a new plant. Also, $2,000,000 of cash was restricted for the retirement of bonds due in 1998. In its 1997 balance sheet, what amount should Eaton report as appropriated retained earnings?
A. $1,750,000
B. $1,450,000
C. $2,950,000
D. $3,200,000
E. $1,200,000
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Appropriating retained earnings is a formal way of marking a portion of retained earnings for other uses.
This is done by reducing retained earnings and transferring the money to appropriated retained earnings.
When the appropriation is no longer necessary, the money is moved back to retained earnings.

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