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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...

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