13. What is meant by earmarking reserves? How may continuity of a reserve policy be secured?
14. Give a logical classification of reserves.
15. Under best practice what should the Surplus account represent?
16. Give the form for the statement of surplus.
Chapter XXIV
1. What are the stockholders’ rights as to profits? As to dividends?
2. What control have the directors over profits and dividends?
3. How are dividends declared? May they be revoked?
4. What is the liability of directors as to dividends.
5. In what different ways may dividends be paid? Explain fully.