Q366
Which reserve is not shown in the Balance sheet?
A.
Secret reserve
AnswerB.
General reserve
C.
Capital reserve
D.
All of the above
Answer: Option A
Solution
Answer: Option A
Solution:
Secret reserve is not shown in the Balance sheet. The term secret reserve refers to a reserve the existence of which is not disclosed in the Balance Sheet. It can be said that there is a surplus of assets over liabilities and that surplus is not disclosed or shown by the Balance Sheet.