Which statement concerning the reserves component of equity is not correct?
A) Reserves represent cash.
B) Retained profits and reserves are often classified under the general heading of reserves.
C) The higher the dividend paid by the company, the lower the reserves.
D) Many reserves arise as transfers from retained profits.
Correct Answer:
Verified
Q2: In the accounting equation, claims on the
Q3: What is the purpose of the statement
Q4: If liabilities are $55,000 and assets are
Q5: Despite the uncertainty in relation to the
Q6: What is another name for accounts receivable?
A)debtors.
B)receivables.
C)accounts
Q7: The recognition criteria for liabilities includes:
A)future obligation.
B)probability
Q8: Intangible assets have no physical substance but
Q9: Identify the asset.
A)Bank overdraft.
B)Plant and equipment.
C)Loan from
Q10: Which of the following is a liability?
A)Drawings.
B)Prepaid
Q11: 'A present obligation of an entity arising
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