Which Set of Accounting Principles Directly Uses the Term "Reserve

question 43

Multiple Choice

Which set of accounting principles directly uses the term "reserve"?

• A)Both IFRS and GAAP
• B)GAAP but not IFRS
• C)IFRS but not GAAP
• D)neither IFRS nor GAAP

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Definitions:

Retained Earnings

Retained earnings refer to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the books for the next period.

Closing Entry

A journal entry made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Revenue Accounts

Revenue accounts are those used in accounting to track the income generated by a business from its normal operations.