Question 11 MarkProvision is made to meet an unknown liability.AnswerFalse.View full question & answer→
Question 21 MarkMaking excessive provision for doubtful debts builds up the secret reserves in the business.AnswerTrue.View full question & answer→
Question 41 MarkDividend equalisation reserve is an example of general reserve.AnswerFalse.View full question & answer→
Question 51 MarkReserve created for maintaining a stable rate of dividend is treated as secret reserve.AnswerFalse.View full question & answer→
Question 71 MarkUsually, capital reserves are not available for distribution as cash dividends.AnswerTrue.View full question & answer→
Question 81 MarkCreation of reserve reduces taxable profits of the business.AnswerFalse.View full question & answer→
Question 91 MarkCapital reserves are normally created out of free or distributable profits.AnswerFalse.View full question & answer→
Question 101 MarkGeneral reserve can be used only for some specific purposes.AnswerFalse.View full question & answer→