The Basic Journal Entry to Create a General Reserve Is

question 22

Multiple Choice

The basic journal entry to create a general reserve is:

• A) DR Income, CR General reserve
• B) DR General reserve, CR Retained earnings
• C) DR Profit or loss summary, CR General reserve
• D) DR Retained earnings, CR General reserve

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Definitions:

Release

To allow or enable escape from confinement; in legal terms, it can involve the relinquishing of a right or claim.

Hang-gliding

An air sport where a pilot flies a light and non-motorized foot-launchable aircraft called a hang glider.

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one's job or role.

Waiver

The voluntary relinquishment or surrender of a right, claim, or privilege.