Question:Which one of the following items does not appear under the heading 'equity and reserves' on a company statement of financial position?
A. Share premium account
B. Retained earnings
C. Revaluation surplus
D. Loan stock
The correct answer is: Loan stock.
Share premium account - This is a statutory reserve.
Retained earnings - Otherwise known as the revenue reserve.
Revaluation surplus - This is an unrealised reserve.
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