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Question two a) The term 'reserves' is frequently found in company balance sheets. (i) Explain the meaning of 'reserves in this context; (ii) Give two

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Question two a) The term 'reserves' is frequently found in company balance sheets. (i) Explain the meaning of 'reserves in this context; (ii) Give two examples of reserves and explain how each of your examples comes into existence. b) A company's issued share capital may be increased by a bonus (capitalization) issue or by a rights issue. Define 'bonus issue' and rights issue' and explain the fundamental difference between these two types of share issue

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