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Question

Revenue reserves are also known as ___________.

A
Free Reserves
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B
Non Free Reserves
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C
Owners reserves
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D
None
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Solution

The correct option is A Free Reserves
Revenue reserves are those reserves which are created out of profits available for distribution by way of dividend. Revenue reserve refers to the amount which are free for distribution by way of dividend. Revenue reserves are also nown as free reserves as they can be freely distributed.

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