Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

What is a reserve called that is specifically represented by earmarked investments?

Options:

Surplus

Reserves

Fund

Profit

Correct Answer:

Fund

Explanation:

The correct answer is option 3- Fund.

A reserve specifically represented by earmarked investments shall be termed as “Fund”.

Earmarked investments refer to funds that have been set aside or allocated for specific purposes or objectives, often separate from general operating funds or profits.