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

Preparation of financial statements — practice question

Which of the following statements are correct? 1 capital reserves originate from normal trading activities 2 capital reserves may be used to pay dividends 3 revenue reserves can be used when bonus shares are issued 4 revenue reserves are profits that have been realised

  • A1 and 2
  • B2 and 3
  • C3 and 4
  • D4 only

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