MULTIPLE CHOTCE. Choose the one altermative that best completes the statement or answers the question. 1) Which of the following statement is correct in relation to the balance of retained eanings? A) it is increased by transfers to reserves C) it is decreased by transfers from reserves B) it is increased by dividend distributions increased by transfers from reserves D)it is 2) Retained earnings represent: A) the undistributed profits of the company B) the previously distributed profits of the company O the profits of a company distributed to shareholders in the current year D) none of the above 3) 4) Total comprehensive income comprises all components of A) profit or loss and other comprehensive income B) assets and liabilities Q) revenue and expenses D) none of the above 5) The dividend determined at the end of the financial year is known as the B) first dividend D) final dividend A) last dividend C) interim dividend 6) Disclosure rules for reporting changes in shareholders' equity are contained in the A) statement of cash flows C) statement of comprehensive income B) statement of changes in equity D) statementof financial position 72 Oneof the main prindiples of the Corporations Act 2001 has been the protection of those dealing with the company including A) the creditors C) the employees B) the shareholders D) all of the above