Accounting · Provisions and Reserves
In financial accounting, 'Reserves' are primarily created to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Meet a specific known liability
- 2Write off depreciated values of assets
- 3Strengthen the general financial position of the business✓
- 4Provide depreciation for fixed assets
Correct answer
Strengthen the general financial position of the business
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