Economics · Accounting Reserves and Provisions
In the accounting context, which one of the following statements is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1'Provision' is a charge against profit.✓
- 2General reserve can be used only for some specific purposes.
- 3Capital reserves are normally created out of distributable profits.
- 4Reserve created is a charge against profits.
Correct answer
'Provision' is a charge against profit.
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