Reserves That Are Not Required by Accounting Standards Are Known

question 58

Multiple Choice

Reserves that are not required by accounting standards are known as:

• A) specific reserves.
• B) general reserves.
• C) current reserves.
• D) retained reserves.

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Definitions:

Book Value per Share

A measure of the net asset value of a company allocated to each outstanding share.

Return on Total Assets

A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Net Profit Margin Percentage

A profitability metric that calculates the percentage of net income derived from revenue, indicating how much of each dollar in revenue results in profit.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company's assets to create profits.