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:

Related MCQs

• These reserves are created out of revenue profits of the business for a specific purpose:
• These reserves are created out of capital profits:
• When the benefits of revenue expenditure is available for a period of two or three years, the expenditure is known as-
• ____________ expenditure is increased to maintain the business or to keep the assets in good working condition
• Which of these types of expenditure would not be treated as a Capital Expenditure
• Which of the following relate to financial position in a set of financial statements?
• Match List I (Financial Statements and Accounts) with List II (special matters associated with statements and accounts) and select the correct answer using the codes given below the lists: List I List II i) Receipts and Payments Account I. Revenue ii) Income and Expenditure Account II. Cash iii) Club subscription received in III. Liability Advance Account Codes:(i) (ii) (iii)
• Treatment of capital expenditure as revenue expenditure is
• Capital expenditure is an expenditure which
• What type of expenditure is shown as asset in balance sheet? Capital expenditure