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    Question

    "Revenue Reserve" is created out

    of:
    A Capital Profits. Correct Answer Incorrect Answer
    B Divisible Profits (Profits from operations). Correct Answer Incorrect Answer
    C Sale of fixed assets. Correct Answer Incorrect Answer
    D Issue of shares at a premium. Correct Answer Incorrect Answer
    E Revaluation of assets. Correct Answer Incorrect Answer

    Solution

    Revenue reserves are built from normal business profits to strengthen the financial position or pay dividends in the future.

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