Reserves that are not required by accounting standards are known as:
A) specific reserves.
B) general reserves.
C) current reserves.
D) retained reserves.

Question

Quizplus · Accepted Answer

Reserves that are not required by accounting standards are known as general reserves. Specific reserves are reserves that are set aside for a specific purpose, current reserves are assets that can be easily converted to cash within a year, and retained reserves refer to the portion of a company's profits that are not distributed as dividends, but kept by the company for various reasons.

Reserves That Are Not Required by Accounting Standards Are Known