Question

Any reserve which is not apparent on the face of the balance sheet is known as _____________.

• A. Secret reserve
• B. Hidden reserve
• C. Inner reserve
• D. Any of these

Answer 1

The correct option is D Any of these

"A reserve which is not visible on the balance sheet is called secret reserves." It is also known as "Hidden reserve" or "Inner reserve".
It is a surplus concealed. In case of a secret reserve existence the actual financial position of the business is better than shown in the balance sheet. In case of bank, insurance companies and financial institutions secret reserves are justified.