Question

    Which one of the following statements is

    correct?
    A Capital reserves Capital reserves are normally created out of free or distributable profits. Correct Answer Incorrect Answer
    B Dividend equalization reserve is an example of general reserve. Correct Answer Incorrect Answer
    C General reserve can be used only for some specific purposes. Correct Answer Incorrect Answer
    D Provision' is a charge against profit. Correct Answer Incorrect Answer

    Solution

    The correct answer is A

    Practice Next

    Relevant for Exams: