Which statement about capital reserves versus revenue reserves is most accurate?
ACapital reserves are created from a company's operating profits, while revenue reserves are generated from the sale of long-term assets.
BCapital reserves typically arise from non-operational transactions and are often not distributable; revenue reserves arise from retained earnings and are generally distributable subject to law.
CBoth capital reserves and revenue reserves are freely distributable to shareholders as dividends.
DRevenue reserves are restricted for specific future use, whereas capital reserves can be used for any business purpose.