Explain the concept of ‘secret res | Class 11 Accountancy Chapter Depreciation, Provisions and Reserves, Depreciation, Provisions and Reserves NCERT Solutions

Question:

Explain the concept of ‘secret reserve’.

Answer:

Secret reserve is the amount by which the assets of an organization are understated or its liabilities are overstated. An entity might establish a secret reserve for competitive reasons, to hide from other businesses that it is in a better financial position than appears in its financial statements.


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Welcome to the NCERT Solutions for Class 11 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 13: Explain the concept of ‘secret reserve’.....