5."Creation of reserves is discretionary".
True
False
Answers
Answered by
2
Creation of Discretionary Reserves
However, Council does in some instances create Discretionary Reserves where: It is anticipated that extensive works will require funding over a period of time; • Funds are collected specifically for funding of capital works; and • There is a legal or legislative requirement.
true
Answered by
22
Answer:
true
Explanation:
Creation of reserves is discretionary. It can be created only if adequate profits have been earned. The object is to provide for depreciation, doubtful debts and other specific liabilities. The object of reserves is to strengthen the financial position of the business.
Similar questions
Math,
4 months ago
Math,
4 months ago
Environmental Sciences,
4 months ago
Math,
9 months ago
Math,
1 year ago
Computer Science,
1 year ago
Math,
1 year ago