Question

What is the difference between stock and reserves?

Answer 1

Answer:

Stock – The materials that have the potential to satisfy human needs is known as stocks. Due to a lack of technology, they are not accessed. Water is an example of stock. It is composed of two inflammable gases hydrogen and oxygen which can be used as a source of energy. However, due to the lack of technology, it cannot be used.

Reserves – Reserved resources are the resources that are defined and their present amount is recognized, but since they are reserved for the future, they are not being used. As a consequence of scientific understanding, these resources may be used, but not yet completely implemented. With drilling, mining, or other strategies, they may gain access.

• Stock is the resources for which presently, we don’t have any technology to extract them.
• Reserve resources are those which we are not extracting at present in spite of technological availability. There are different types of reserves used in financial accounting like capital reserves, revenue reserves, statutory reserves, realized reserves, unrealized reserves.
• There are two main types of stocks common stock and preferred stock.

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