Accountancy, asked by farhat8, 1 year ago

what is secret reserve

Answers

Answered by AbhiramiGNath
2
Secret reserves are reserves the existence of which does not appear on the Balance Sheet. In such a situation, net assets position of the business is stronger than that disclosed by the Balance Sheet.

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Answered by thrisha3
2
secret reserve is a reserve which does not appear in the balance sheet. it may also help to reduce the disclosed properties and also the tax liability. The Secret reserve can be merged with the profits during the lean periods to show improved profits.
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