Which of the Following Is Not True Regarding Reserves That

question 39

Multiple Choice

Which of the following is not true regarding reserves that appear in the equity section of the balance sheet of foreign companies?

• A) Reserves represent cash set aside to fund capital projects.
• B) Reserves are different categories found in the equity section of the balance sheet.
• C) The balances in reserve accounts can affect an entity's legal ability to pay cash dividends.
• D) An extensive description of each reserve shown on the balance sheet is provided.

---

Definitions:

Designates Time Frame

Specifies the period during which an event occurs or an action is supposed to take place.

Achievement of Goal

The successful accomplishment or attainment of a specified objective or target.

Task-Centered Model

A social work intervention model focusing on short-term tasks to bring about change, emphasizing the client's active role and problem resolution.

Incremental Action Steps

Small, manageable actions taken one at a time to gradually achieve a larger goal.