Which Statement Concerning the Reserves Component of Equity Is Not

question 4

Multiple Choice

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.

---

Definitions:

Customer Trust

The confidence that consumers place in a company, its products, and its services, reflecting their expectations of product performance and company integrity.

In-house Complaint Procedures

Refers to the internal processes established by an organization for employees to report grievances, conflicts, or issues for resolution.

Complaints

Formal expressions of dissatisfaction or reports of unacceptable behavior or conditions.

Legitimate Business Interests

Justifiable concerns or objectives that a company may seek to protect or pursue in order to maintain its competitive edge, such as intellectual property or customer relationships.