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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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