A transfer from retained earnings would have created a/an:
A) asset revaluation reserve
B) foreign currency translation reserve
C) general reserve
D) share premium reserve

Question

Quizplus · Accepted Answer

Transferring money from retained earnings to a general reserve account means setting aside funds for future use, such as investments or expansion plans. This increases the company's financial stability and helps it better weather any economic downturns. The other options - asset revaluation reserve, foreign currency translation reserve, and share premium reserve - are typically created for specific accounting purposes unrelated to the transfer of retained earnings.

A Transfer from Retained Earnings Would Have Created A/an