the disclosure that management does not intend to distribute in the form of dividend 633671

An appropriation of retained earnings by the board of directors of a corporation for future plant expansion will result in

1. The establishment of a fund to help finance future plant expansion.
2. The setting aside of cash to be used for future plant expansions.
3. A decrease in cash on the balance sheet with an equal increase in the investments and funds section of the balance sheet.
4. The disclosure that management does not intend to distribute, in the form of dividends, assets equal to the amount of the appropriation.