Practice mode Capital And Revenue Expenditure

Which one of the following counts as a revenue reserve?

Correct answer C. Debenture redemption reserve

Explanation

A debenture redemption reserve is set aside out of profits to repay debentures and is classed as a revenue reserve, whereas the other options are capital reserves that cannot be freely distributed as dividends.

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Which one of the following counts as a revenue reserve?

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Which one of the following counts as a revenue reserve?

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