An item that would be considered a first charge against profit in a company's account is

Answer Details

A first charge against profit in a company's account is an item that is paid out of the profits before any dividends are paid to the shareholders. The only option that meets this definition is "preference dividend". Preference dividends are paid to preference shareholders before ordinary shareholders, and they must be paid before the company can pay any dividends to its ordinary shareholders. Therefore, preference dividends are considered a first charge against profit in a company's account. The other options, such as capital reserve and general reserve, are not necessarily paid out of profits and may be optional depending on the company's financial situation.