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DP
Question Practice

What is the primary purpose of creating a reserve?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Accountancy
Financial Accounting - I
Depreciation, Provisions and Reserves
Question Bank

What is the primary purpose of...

Single Answer MCQ
Q-00054365

What is the primary purpose of creating a reserve?

1

To distribute profits as dividends

2

To strengthen the financial position of the business

3

To reduce tax liabilities

4

To record unpaid expenses

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