These reserves are created out of revenue profits of the business for a specific purpose:

Related MCQs

• These reserves are created out of capital profits:
• These are the reserves created only to strengthen the financial position or the business and to keep the funds available for any future contingency or expenditure that may be required:
• Which of the following is a resource owned by the business with the purpose of using it for generating future profits?
• As per the Companies Act, 1956 which of these are allowed to create secret reserves in their books of account
• These reserves are not shown in the balance sheet:
• In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years.
• ______________ is the major source of revenue of any business
• A charge created not on specific assets but generally on all assets is known as………….
• Equity Shareholders giving up their claim to the reserves & accumulated profit amounts to______________
• . …….of profit is transferred to statutory reserves.