CAF-1 · Chapter 8 · Question 1 of 15
Which of the following is considered a 'revenue reserve' (distributable reserve) in the statement of changes in equity?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Retained earnings.
Explanation
Retained earnings and general reserves are classified as revenue (distributable) reserves, whereas share premium and revaluation surplus are capital (non-distributable) reserves.
More Statement of Changes in Equity MCQs
- Q3Where must an entity present the amount of dividends recognized as distributions to owners during the period?
- Q4Which of the following causes an overall change in equity during a period?
- Q5An interim dividend of Rs. 15 million is paid during the financial year. How is this recorded in the financial statements?
- Q6What is the primary purpose of a 'Dividend Equalization Reserve'?
- Q7Which of the following is NOT permitted to be charged or credited to the Share Premium account?