Question

explain the reserves​

Answer 1

Answer:

Reserves – also known as retained earnings – are portions of a business's profits which have been set aside to strengthen the business's financial position. ... Reserves are often used to purchase fixed assets; to repay debts; or to fund expansions, bonuses, and dividend repayments.

Answer 2

• ʀᴇsᴇʀᴠᴇs –

ᴀʟsᴏ ᴋɴᴏᴡɴ ᴀs ʀᴇᴛᴀɪɴᴇᴅ ᴇᴀʀɴɪɴɢs – ᴀʀᴇ ᴘᴏʀᴛɪᴏɴs ᴏғ ᴀ ʙᴜsɪɴᴇss's ᴘʀᴏғɪᴛs ᴡʜɪᴄʜ ʜᴀᴠᴇ ʙᴇᴇɴ sᴇᴛ ᴀsɪᴅᴇ ᴛᴏ sᴛʀᴇɴɢᴛʜᴇɴ ᴛʜᴇ ʙᴜsɪɴᴇss's ғɪɴᴀɴᴄɪᴀʟ ᴘᴏsɪᴛɪᴏɴ. ... ʀᴇsᴇʀᴠᴇs ᴀʀᴇ ᴏғᴛᴇɴ ᴜsᴇᴅ ᴛᴏ ᴘᴜʀᴄʜᴀsᴇ ғɪxᴇᴅ ᴀssᴇᴛs; ᴛᴏ ʀᴇᴘᴀʏ ᴅᴇʙᴛs; ᴏʀ ᴛᴏ ғᴜɴᴅ ᴇxᴘᴀɴsɪᴏɴs, ʙᴏɴᴜsᴇs, ᴀɴᴅ ᴅɪᴠɪᴅᴇɴᴅ ʀᴇᴘᴀʏᴍᴇɴᴛs.