Question : Capital reserve is ............
Option 1: Not available for Distribution
Option 2: Available for Distribution
Option 3: Available for Dividend Distribution
Option 4: None of the Above
Answer (1)
26th Jan, 2024
Correct Answer: Not available for Distribution
Solution : Capital reserve refers to a type of reserve that is created out of the profits or surplus funds of a company, typically stemming from non-operational activities. Capital reserve is not available for dividend distribution.
Hence the correct answer is option 1.
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