what is capital reserve ? with examples .
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Answered by
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hey mate..your answer:-
Definition of Capital Reserve:-
Capital Reserve can be understood as the sum earmarked for specific purposes or long term projects. It is the result of capital profit that is earned by the company from transactions of capital nature, such as:
Example:- Profit on sale of fixed assets or investment.
Answered by
1
maintaining some portion of profit for further needs
Explanation:
it is the process of safekeeping some amount on profit earned to deal with long term projects or investment in future by the company. generally reserve promotes liquidity.
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