Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › Revenue reserves are created out of which kind o…
Revenue reserves are created out of which kind of profits?
ASale of fixed assets
BPremium on shares
CNormal trading activity
DRevaluation of assets
Answer & Solution
Correct answer: C. Normal trading activity
Revenue reserves come from revenue profits that arise from the normal operating activities of the business.
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