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WAEC Accounting 2017 Objective — Question 38

Question 38 of 50 from the West African Examinations Council (WAEC) Accounting 2017 Objective paper, with the correct answer and a full explanation.

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38. Share premium is classified in the balance sheet as

  • A. A. fixed capital
  • B. B. capital reserveCorrect
  • C. C. revenue
  • D. D. short-term capital

Explanation

Share premium is a capital reserve to the business because it does not reoccur yearly.

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