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A Company Transfers $10 000 from the Retained Earnings Account

Question 25

Multiple Choice

A company transfers $10 000 from the retained earnings account to a general reserve account.The effect of this transfer on the company's balance sheet is:


A) total shareholders' equity will decrease.
B) total shareholders' equity remains unchanged.
C) total shareholders' equity will increase.
D) total shareholders' equity will decrease and assets will decrease.

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