Which of the following options are INCORRECT? A reserve:
(i) is an appropriation of profit
(ii) is created to cover a known liability or expected future loss
(iii) is a charge against profits
(iv) is meant to strengthen the financial position of the business
1
Both (i) and (ii)
2
Both (ii) and (iv)
3
Both (iii) and (iv)
4
Both (ii) and (iii)