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Biodiversity and Its Conservation

is reserve cr...

Question

__________is reserve created to meet any loss due to natural calamities.

A

Revenue reserve

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B

Capital reserve

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C

Catastrophic reserve

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D

None of these

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Solution

The correct option is D Catastrophic reserve
Catastrophic reserve means a reserve which is meant for meeting losses arising from an entirely unexpected set of events and not for any specific purpose. This reserve is in the nature of an amount set aside for the potential future liability against the insurance policies.

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Q. State whether the following Statements are True or False

1. There is need to provide depreciation if it is maintained with care.
2. Depreciation cannot be provided in case of loss in a financial year.
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