Accountancy, asked by drasti0510, 7 months ago

Every Insurer carrying on general insurance business should create a ___________ to meet future potential liability.
a. Statutory Reserve
b. Contingency Reserve
c. Catastrophe
d. Reserve

Answers

Answered by unknown9594
2

Explanation:

reserve Bank nai hai samjaa

Answered by vinod04jangid
0

Answer:

Option b. Contingency Reserve is the correct alternative amongst the available ones.

Explanation:

  • An emergency fund is simply a fund set aside to deal with unexpected debts outside of a normal operating budget. Emergency funds protect the organization from potential losses in the event of an emergency.
  • Emergency savings are a benefit set aside to monitor future losses. A designated emergency area is needed in cases where the business occasionally loses a lot, and requires a set amount to offset that loss.
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