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- Capital reserve and revenue reserve are two types of reserves that companies can create123.Key differences between capital reserve and revenue reserve are123:
- Capital reserve is created from the capital profits of the business, which are always non-operational. Revenue reserve is created from the trading or operating activities of the business.
- Capital reserve is created for long-term future projects and to write-off the capital losses. Revenue reserve is created to meet multiple purposes.
- Capital reserve is the money put aside for long term projects or for any major costs a company expects in the future, such as repairs, upgrades, or expansion. Revenue reserve is a portion of profit set aside for general business operations or unforeseen losses.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Key Differences Between Capital Reserve and Revenue Reserve A company creates a Revenue reserve from the trading or operating activities of the business. But the capital reserve is created from the capital profits of the business, which are always non-operational. The company can distribute Revenue reserves as dividends to shareholders.www.wallstreetmojo.com/revenue-reserve-vs-capit…Revenue Reserve is a portion of profit set aside for general business operations or unforeseen losses. Capital Reserve, on the other hand, is the money put aside for long term projects or for any major costs a company expects in the future, such as repairs, upgrades, or expansion.www.under30ceo.com/terms/revenue-reserve-vs-c…Capital Reserve is a reserve created to finance long-term future projects and to write-off the capital losses. It is the capital excess of the company. They are created for specialized long-term purposes. Meanwhile, A revenue Reserve is a reserve created to meet multiple purposes.www.pw.live/blogs-commerce-ca/difference-betwe… - People also ask
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