Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Which row correctly gives one example of a capital reserve and one example of a revenue reserve?

  • Acapital reserve: general reserve; revenue reserve: retained earnings
  • Bcapital reserve: retained earnings; revenue reserve: revaluation reserve
  • Ccapital reserve: revaluation reserve; revenue reserve: share premium
  • Dcapital reserve: share premium; revenue reserve: general reserve

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