Which Statement Relating to Reserves Is Incorrect

question 35

Multiple Choice

Which statement relating to reserves is incorrect?

• A) They represent cash set aside to be drawn on in hard times.
• B) They represent items of equity other than share capital.
• C) Retained earnings is a type of reserve account.
• D) When a non-current asset is revalued upwards a revaluation reserve is created.

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Definitions:

Inflammation

A protective response by the body's immune system to injury, infection, or irritation, characterized by redness, heat, swelling, and pain.

Osteoclasts

Cells that break down bone tissue, helping to remodel and repair bones.

bone

A dense, hard connective tissue composing the skeleton of most vertebrates, providing structure and protecting organs.

Osteoblast

A type of cell responsible for bone formation.