Distinction between capital and revenue reserves - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2016

Which of the following is the capital reserve of a company?

A. Accumulated depreciation
B. Retained profit
C. Share premium
D. Loss on forfeited shares

Question 7:

• JAMB 2016

When the purchase consideration is lower ttan the net asset, the buyer has gained the advantage of

A. Capital reserve
B. Revenue reserve
C. Net income
D. Net loss

Question 8:

• JAMB 2019

Retained profits is an example of

A. Revenue reserve
B. Capital reserves
C. General reserves
D. Loan capital