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Explain the need for account reserves. What do accountants create reserves for (be specific)? What purpose...

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Accounting

Explain the need for account reserves. What do accountantscreate reserves for (be specific)? What purpose do reserves serve?How do reserves make a company's financial records moreaccurate?

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All part of income generated not distributed as dividend among share holders Some part of these are retained and further used in business These part of profit retained in the business referred as reserves These reserve may have future purpose or may not Reserves gives the business a scope of expansion in future as share holders fund grow    See Answer
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