The Term 'Reserves' in the Statement of Financial Position Is

question 67

Multiple Choice

The term 'reserves' in the statement of financial position is used to identify:

• A) a decline in the fair value of a non-current asset.
• B) an amount of retained earnings that is allocated for a specific purpose.
• C) the allowance for uncollectible receivables.
• D) an amount that is being accumulated to reduce the financial effect of a litigation lawsuit.

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Definitions:

Primary Alcohol

An alcohol with the hydroxyl group attached to a carbon atom that is bound to only one other carbon atom.

Secondary Alcohol

An alcohol where the hydroxyl group is connected to a carbon atom with two other alkyl groups attached.

Tertiary Alcohol

An alcohol in which the hydroxy functional group (OH) is bonded to a carbon atom connected to three other carbon atoms.

IUPAC Name

The systematic naming of chemical compounds based on the rules established by the International Union of Pure and Applied Chemistry.