A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2022 · Q171 Mark
Which statements are correct? 1 Dividends can be paid out of the general reserve. 2 Rights issues can be made from the share premium account. 3 The general reserve can be created from retained earnings.
A1 and 2
B1 and 3
C1 only
D2 and 3
✓ Correct answer
B: 1 and 3
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