Accountancy, asked by Student1135, 5 months ago

Why a Revenue reserve is created in business?

Answers

Answered by sarikakoirala18
2

Answer:

The revenue reserves are defined as the reserves that the business tends to retain from the profit earned. The reserves so created are utilized for meeting out contingencies. The contingencies range from payment of unforeseen financial emergencies or payment on short-term debt.

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