Question

Reserves created for maintaining stable rate of dividend is termed as

Answer 1

Answer:

Dividend equalisation fund

Explanation:

Dividend Equalization reserve is a distributable reserve which is specifically set up to  ensure that dividends remain stable for despite being changes in earnings.Stability in dividend helps in maintaining trust among shareholders. So in the year of higher profit companies transfer some part of profit to this fund and in year of less profit dividend is paid out of this profit.