Which of the Following Statements Is True

question 24

Multiple Choice

Which of the following statements is true?

• A)The par value of shares is the current market price of the common stock shares issued by the FI times the number of shares outstanding.
• B)Retained earnings is the accumulated value of past profits not yet paid out in dividends to shareholders.
• C)Loan loss reserve is a special reserve set aside out of retained earnings to meet unexpected losses on the portfolio.
• D)All of the listed options are correct.

---

Definitions:

Customer's Ledger

A detailed record keeping of all transactions between a business and its customers, often part of the accounts receivable.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.

Accounts Receivable

Funds due to a company from its clients for goods or services rendered but payment has not been received yet.

Cash Receipt

A document or electronic record acknowledging the receipt of cash from a transaction.