______ is the amount of profits that are kept aside for expected expenditure.

Reserves

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Provisions

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Both A & B

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None of these

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Solution

The correct option is B
Provisions

Provision is the amount of profits that are kept aside for expected expenditure.

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Similar questions

______ is the part of profits that are kept aside for unexpected expenditure.

Which account is to be credited while setting aside profits as a reserve?

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