Which of the following control considerations will help ensure that all cash disbursements are made only to legitimate vendors?

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect on this action is to

A. decrease total assets and total stockholders' equity B. increase stockholder's equity and decrease total liabilities C. decrease total retained earnings and increase total liabilities D. reduce the amount of retained earnings available for dividend declarations

Rolex is an expensive brand of watches, can only be purchased in high-end jewelry stores located in large metropolitan areas, and most buyers will accept no substitutes. The company has a policy of only having one dealer within a given large geographic area. Buyers of Rolex watches will travel to acquire just the right watch. A Rolex watch is an example is an example of a _____ product and an illustration of ______ level of distribution.

a. Specialty; exclusive b. Specialty; intensive c. Convenience; selective d. Shopping; intensive e. Shopping; exclusive