Which of the following options are INCORRECT ? A Reserve : (i) an appropriation on the profit (ii) is created to cover a known liability or expected future loss (iii) is a charge against the profit (iv) is meant to stren

CS Executive · Corporate and Management Accounting · PYQS · June 2024
Which of the following options are INCORRECT ? A Reserve : (i) an appropriation on the profit (ii) is created to cover a known liability or expected future loss (iii) is a charge against the profit (iv) is meant to strengthen the financial position of the company
(A) Both (i) and (ii)
(B) Both (ii) and (iv)
(C) Both (iii) and (iv)
(D) Both (ii) and (iii)

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Accounting

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