what is reserves
explain it properly
Answers
reserves are the subset of the stock,which can be put into use with the help of existing technical know-how but their use has not been started. these can be used for meeting future requirements.river water can be used for generating hydroelectric power but presently,it is being utilised only to a limited extent.
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Q :- WHAT IS RESERVE?
ANS :- Reserves are often used to purchase fixed assets; to repay debts; or to fund expansions, bonuses, and dividend repayments.
Reserves are often used to purchase fixed assets; to repay debts; or to fund expansions, bonuses, and dividend repayments.Although the IFRS Standards sometimes call provisions a 'reserve', they are not the same thing - a provision is an upcoming liability without a confirmed date or cost.
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