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What is the key difference between provisions and reserves?a)Provisions are created out of capital profits, while reserves come from revenue earnings.b)Provisions are meant to strengthen the financial position, while reserves are for specific liabilities.c)Provisions are charges against profit, while reserves are appropriations of profit.d)Provisions reduce divisible profits, while reserves increase the working capital.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the key difference between provisions and reserves?a)Provisions are created out of capital profits, while reserves come from revenue earnings.b)Provisions are meant to strengthen the financial position, while reserves are for specific liabilities.c)Provisions are charges against profit, while reserves are appropriations of profit.d)Provisions reduce divisible profits, while reserves increase the working capital.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the key difference between provisions and reserves?a)Provisions are created out of capital profits, while reserves come from revenue earnings.b)Provisions are meant to strengthen the financial position, while reserves are for specific liabilities.c)Provisions are charges against profit, while reserves are appropriations of profit.d)Provisions reduce divisible profits, while reserves increase the working capital.Correct answer is option 'C'. Can you explain this answer?.

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