Item 13 refers to the following account. Appropriation Account $ $ Taxation reserve 10,000.00 By balance 894.50 Preliminary 250.00 Net profit 26,106.50 Transfer to general reserve 4,000.00 Preference share dividend 1,200.00 Ordinary share dividend 6,000.00 13. What conclusion could be drawn from the above appropriation account? i. The company is engaged in a profitable enterprise. ii. The company is not doing too well iii. More dividends can be given to the ordinary shareholders. a. I only c. II only b. I and III only d. II and III only
Item 13 refers to the following account. Appropriation Account $ $ Taxation reserve 10,000.00 By balance 894.50 Preliminary 250.00 Net profit 26,106.50 Transfer to general reserve 4,000.00 Preference share dividend 1,200.00 Ordinary share dividend 6,000.00 13. What conclusion could be drawn from the above appropriation account? i. The company is engaged in a profitable enterprise. ii. The company is not doing too well iii. More dividends can be given to the ordinary shareholders. a. I only c. II only b. I and III only d. II and III only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Item 13 refers to the following account.
Appropriation Account
$ $
Taxation reserve 10,000.00 By balance 894.50
Preliminary 250.00 Net profit 26,106.50
Transfer to general reserve 4,000.00
Preference share dividend 1,200.00
Ordinary share dividend 6,000.00
13. What conclusion could be drawn from the above appropriation account?
i. The company is engaged in a profitable enterprise.
ii. The company is not doing too well
iii. More dividends can be given to the ordinary shareholders.
a. I only c. II only
b. I and III only d. II and III only
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