Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › A reserve may be set up to meet which future need?
A reserve may be set up to meet which future need?
ASettling last year's wages
BA future contingency
CPaying current creditors
DWriting off bad debts
Answer & Solution
Correct answer: B. A future contingency
Reserves are retained profit kept for future contingencies, expansion or redemption of long-term liabilities.
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