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Secret reserve can be created by ___ ___ _ ?

A. public limited company only.B. banking and financial companies only.C. private limited company only.D. co-operative societies

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2015/01/15
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

b

MOHAMMAD WAQAS KHAN
by MOHAMMAD WAQAS KHAN , seniour accountant , new bilour match

B

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option (B)   >>>>>>>>>>>>   banking and financial companies only.

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

Secret Reserve:

 

Arise as a result of the use of secret reserves management means lead to show shareholders' equity in the balance less than the real value is the means that lead to the existence of secret reserves:

 

* Overvaluation in determining the value of allowances

* Depreciation of capital expenditure once the profits or the number of years less than those of the past, which benefit expenses

* Fixed prove undervalued assets

* Prove obligations by more than its actual value

Shamseer KM
by Shamseer KM , Accounts and Admin Payroll , KBM Group

The Correct Answer is - B) - Banking and Financial Companies only.

  • A reserve which maintained to strengthen the financial position of the business without disclosing it in the book is known as secret reserve.
  • It is maintained by bank, Insurance and other financial institutions.

Deleted user
by Deleted user

D. co-operative societies

Waqar Ahmed
by Waqar Ahmed , Accountant , AYS International

B banking & financial companies only

Roy Aviles
by Roy Aviles , Senior Accountant , Bab Ishtar Group WLL

the answer are all of them. Because secret reserves is created to srengthen its financial position. Like, creating less value in asset and more value in liabilities shown in the balance sheet to avoid high tax imposed. Its the duty of audit program to detect such reserves exist.

fadil hoory
by fadil hoory , محاسب , شركة مقاولات بالسعودية

Answer d

Also found in theGovernmental Accounting

Muhammad Naveed
by Muhammad Naveed , Accounts Receivable Executive & Sales Coordination , MB FEEDS

C

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