Provisions and Reserves

Reserve arising from capital receipts are known as

• capital Reserve

• Reserve fund

• Any of ( a ) or ( b )

• None of these

Provisions are

• external transactions

• internal transactions

• can be ( a ) or ( b )

• None of these

if the amount of any known liability cannot be determined with accuracy

• a liability should be provided

• a provision should be made

• a reserve should be set aside

• none of these

profit on sale of fixed asset is used to create

• specific reserve

• General Reserve

• Capital Reserve

• None of these

Provision is a

• specific reserve

• general reserve

• capital reserve

• none of these

if the amount of known liability can be determined with accuracy

• a liability should be provided

• a provision should be made

• a reserve should be set aside

• none of these

Provision is a......

• charge against profit

• appropriation of profit

• contingent liability

• none of the these

Which of the following is a provision?

• provision for doubtful debts

• provision for repair and renewals

• provision for taxation

• all above

Which of the following is not an example of capital reserve?

• profit on sale of asset

• profit on revaluation of assets and liabilities

• general reserves

• securities premium reserve

Provisions are.................... items so profit is retained in the firm

• cash

• non-cash

• both

• none of the above