The transfer of profit to reserve should not exceed
A)5% of profit
B)10% of profit
C)15% of profit
D)20% of profit

Question

Quizplus · Accepted Answer

The transfer of profit to reserve is typically capped at 10% of profit, as a general guideline in financial management to ensure that a portion of the earnings is retained for future growth or to cushion against future uncertainties, while still allowing a significant portion of the profit to be available for dividends, reinvestment, or other purposes.

The Transfer of Profit to Reserve Should Not Exceed