Which of the Following Statements About the General Reserve Account

question 40

Multiple Choice

Which of the following statements about the general reserve account is NOT true?

• A) A transfer to this account may be used to indicate to shareholders that it is unlikely to be paid out in dividends.
• B) Funds can be transferred back from it to retained profits.
• C) The general reserve account provides an indication of where funds are invested.
• D) The general reserve account appears under shareholders' equity in the balance sheet.

Use financial controls and ratios for strategic decision-making and problem-solving.

Understand the purpose and process of bank reconciliations, including identifying timing differences and errors.

Know the functions of a Check Register and its role in tracking payments and deposits to the checking account.

Recognize the importance of separating personal and business finances, and the impact on accounting records.

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Definitions:

Quantity Demanded

Quantity Demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price, over a specified time period.

Total Revenue

The complete amount of income generated by the sale of goods and services before any expenses are deducted.

Unit Elastic

A situation in economics where a percentage change in price causes an equal percentage change in quantity demanded or supplied.

Elasticity

A measure in economics of how much the quantity demanded or supplied of a good changes in response to changes in its price or other factors.