state gov Kerala (കേരളം) PSC Divisional Accountant Test Series 2025 Accountancy Depreciation, Reserve & Provision
Which of the following statements is true about capital reserves and revenue reserves?
1
Capital reserves are more permanent than revenue reserves.
2
Revenue reserves are more readily available for distribution than capital reserves.
3
Capital reserves are created out of profits, while revenue reserves are created out of other sources.
4
Capital reserves and revenue reserves are both used to provide a buffer against potential losses.