Question

Secret reserves may be created by

Answer 1

To create the secret reservesmanagement shows the fictitious as actual liabilities. Sometimes to create thesecret reserves management charges the capital expenditure to revenue. The profit is reduced. Sometimes management omits some assets from the balance sheet and in this way it creates the secret reserves.

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Answer 2

Answer:

secreat reserves created in following terms:-

1.accelerating the depreciation of fixed assets

2.writing off assets entirely