Secret reserve can be created by ___ ___ _ ?

b

B

Answer option (B)   >>>>>>>>>>>>   banking and financial companies only.

Secret Reserve:

 

Arise as a result of the use of secret reserves management means lead to show shareholders' equity in the balance less than the real value is the means that lead to the existence of secret reserves:

 

* Overvaluation in determining the value of allowances

* Depreciation of capital expenditure once the profits or the number of years less than those of the past, which benefit expenses

* Fixed prove undervalued assets

* Prove obligations by more than its actual value

The Correct Answer is - B) - Banking and Financial Companies only.

• A reserve which maintained to strengthen the financial position of the business without disclosing it in the book is known as secret reserve.
• It is maintained by bank, Insurance and other financial institutions.

D. co-operative societies

B banking & financial companies only

the answer are all of them. Because secret reserves is created to srengthen its financial position. Like, creating less value in asset and more value in liabilities shown in the balance sheet to avoid high tax imposed. Its the duty of audit program to detect such reserves exist.

(D)

Answer d

Also found in theGovernmental Accounting

C