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

Preparation of financial statements — practice question

Which of the following statements is correct concerning the financial statements of limited companies?

  • ADebentures are presented as part of the total equity.
  • BDividend paid is shown in the statement of changes in equity.
  • CProposed dividend reduces the balance of retained earnings.
  • DThe gain from revaluation of non-current assets is added to retained earnings.

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