CBSE · Class 11 · Accountancy · Depreciation, Provisions and ReservesWhich reserve is created for no specific purpose and can be used for any purpose?
Step-by-Step Solution
General reserve is created without any specific purpose and can be utilized for meeting any unforeseen losses or contingencies.
Detailed Options Breakdown
Option : Specific Reserve
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 1: Secret Reserve
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 2: General Reserve (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Capital Reserve
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
💡 Study Guide: This question tests core syllabus concepts from Depreciation, Provisions and Reserves. For formulas, key summaries, and mock exam reference guides, read the full Depreciation, Provisions and Reserves Revision Notes.