The Effect on the Balance Sheet of an Accounting Entry

question 31

Multiple Choice

The effect on the balance sheet of an accounting entry making a transfer from the retained earnings account to a general reserve account is:

• A)a decrease the total shareholders' equity of the company.
• B)there is no change to total shareholders' equity.
• C)an increase in the total shareholders' equity of the company.
• D)a decrease in the total shareholders' equity and a decrease in assets

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Definitions:

Married Couple

Two individuals legally united in marriage, whose marital status can affect their tax filings, legal rights, and other societal entitlements.

Tax Liability

The aggregate tax liability of an individual, corporation, or any entity to a tax-collecting agency.

SLII

stands for Situational Leadership II, a leadership model that proposes the idea of adjusting leadership style based on the development level of followers.

Corporations

Large business entities recognized by law as a single body, with its own rights and obligations, separate from those of its members.