Question:-define reserves.
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something kept or stored for use or need; stock: a reserve of food. a resource not normally called upon but available if needed. a tract of public land set apart for a special purpose: a forest reserve. an act of reserving; reservation, exception, or qualification: I will do what you ask, but with one reserve.
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A reserve is a retained earnings secured by a company to strengthen a company's financial position, clear debt & credits, buy fixed assets, company expansion, legal requirements, investment and other plans. These are usually done to save the cash from being used in other purposes.
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