CA Foundation Exam > CA Foundation Questions > The Reserve which is created for a particular...
Start Learning for Free
The Reserve which is created for a particular purpose and which is a charge against revenue is called
- a)Capital Reserve
- b)General Reserve
- c)Secret Reserve
- d)Specific Reserve
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The Reserve which is created for a particular purpose and which is a c...
A specific reserve is one, which is created for some specific purpose by debiting Profit and Loss Appropriation Account. Normally, it is available for the purpose for which it has been created.
Most Upvoted Answer
The Reserve which is created for a particular purpose and which is a c...
Specific Reserve
Specific Reserve is created for a particular purpose and is considered a charge against revenue. It is a reserve fund that is set aside for a specific reason, such as to cover a known liability or to finance a specific project. Here are some key points to understand about Specific Reserve:
Purpose
- Specific Reserve is created for a specific purpose, such as to meet a known liability, finance a project, or any other specific reason.
- It is different from General Reserve, which is created for general business purposes.
Charge Against Revenue
- Specific Reserve is considered a charge against revenue because it reduces the profits available for distribution as dividends.
- It indicates that a portion of the revenue is set aside for a specific purpose before determining the net profit.
Capitalization
- Specific Reserve is usually capitalized in the company's financial statements to reflect the funds set aside for a specific purpose.
- It is important for transparency and accountability in financial reporting.
Examples
- Examples of Specific Reserves include Debenture Redemption Reserve, Dividend Equalization Reserve, and Contingency Reserve.
- Each of these reserves serves a specific purpose and is created to ensure financial stability and meet specific obligations.
In conclusion, Specific Reserve is a reserve fund created for a particular purpose and is considered a charge against revenue. It plays a crucial role in financial management and ensures that funds are allocated for specific needs within the organization.
Specific Reserve is created for a particular purpose and is considered a charge against revenue. It is a reserve fund that is set aside for a specific reason, such as to cover a known liability or to finance a specific project. Here are some key points to understand about Specific Reserve:
Purpose
- Specific Reserve is created for a specific purpose, such as to meet a known liability, finance a project, or any other specific reason.
- It is different from General Reserve, which is created for general business purposes.
Charge Against Revenue
- Specific Reserve is considered a charge against revenue because it reduces the profits available for distribution as dividends.
- It indicates that a portion of the revenue is set aside for a specific purpose before determining the net profit.
Capitalization
- Specific Reserve is usually capitalized in the company's financial statements to reflect the funds set aside for a specific purpose.
- It is important for transparency and accountability in financial reporting.
Examples
- Examples of Specific Reserves include Debenture Redemption Reserve, Dividend Equalization Reserve, and Contingency Reserve.
- Each of these reserves serves a specific purpose and is created to ensure financial stability and meet specific obligations.
In conclusion, Specific Reserve is a reserve fund created for a particular purpose and is considered a charge against revenue. It plays a crucial role in financial management and ensures that funds are allocated for specific needs within the organization.
Free Test
FREE
| Start Free Test |
Community Answer
The Reserve which is created for a particular purpose and which is a c...
A
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer?
Question Description
The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer?.
The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer?.
Solutions for The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The Reserve which is created for a particular purpose and which is a charge against revenue is calleda)Capital Reserveb)General Reservec)Secret Reserved)Specific ReserveCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup