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- Reserves are portions of a company's profits that are set aside and retained within the business entity123. Reserves are a component of retained earnings and can appear in any part of shareholders' equity except for contributed or basic share capital24. Reserves are created by appropriating funds for specific or general purposes, such as purchasing fixed assets, paying legal settlements, meeting future contingencies, or growing the business152. Reserves are not distributed to shareholders as dividends3.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.In accounting, reserves are portions of a company's profits that are set aside for specific or general purposes. The process of setting aside funding for specific purposes is called appropriation.www.indeed.com/career-advice/career-developme…Reserves in Accounting At the end of a financial year when a company earns a profit certain portion of it is retained in the business to meet future contingencies, growth prospects, etc. This amount of money kept aside is termed as reserves. Reserves are a component of retained earnings.www.accountingcapital.com/basic-accounting/wha…In the field of accounting, reserves are defined as the portion of a company’s profits that are set aside and retained within the business entity. These funds are not distributed to shareholders as dividends but are instead held in reserve for various purposes.livewell.com/finance/what-is-reserve-in-accounting/In financial accounting, reserve always has a credit balance and can refer to a part of shareholders' equity, a liability for estimated claims, or contra-asset for uncollectible accounts. A reserve can appear in any part of shareholders' equity except for contributed or basic share capital.en.wikipedia.org/wiki/Reserve_(accounting)A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so forth. This is done to keep funds from being used for other purposes, such as paying dividends or buying back shares.www.accountingtools.com/articles/what-is-reserve-…
Reserve accounting — AccountingTools
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