Practicing Success
What is the difference between the reserve capital and the capital reserve of the company? |
Capital reserves arise from capital profits, whereas reserve capital arises through the company’s uncalled share capital Capital reserves arises through the company’s uncalled share capital, whereas reserve capital arises from capital profits Capital reserves arises through the company’s called up share capital, whereas reserve capital arises from capital profits None of the above |
Capital reserves arise from capital profits, whereas reserve capital arises through the company’s uncalled share capital |
Though the two terms capital reserve and reserve capital sound quite similar to one another, there are a number of major differences between capital reserve and reserve capital. While both are forms of capital held by a firm, capital reserves arise from capital profits and capital surpluses, whereas reserve capital arises through the company’s uncalled share capital. |