WAEC Financial Accounting 2005 Question 38

Question 38

Company Accounts

Which of the following is not an appropriation of profit?

  1. A.Dividends
  2. B.Reserves
  3. C.Provisions
  4. D.Bonus issue.
Show the answer and explanation

Answer: C (Provisions)

Explanation

Provisions are charges against profit, not appropriations of it.