answersLogoWhite

0

Examples of revenue reserve

Updated: 9/14/2023
User Avatar

Wiki User

9y ago

Best Answer

The revenue reserve refers to the portion of the business profits that are usually retained by the company for investments for future growth. There are usually not redistributed to the shareholders through the special or regular dividends.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Examples of revenue reserve
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What is consolidated reserve?

consolidated revenue reserve


When was Revenue Equalization Reserve Fund created?

Revenue Equalization Reserve Fund was created in 1956.


What is the difference between general reserve and revenue reserve?

A reserve which is created out of the revenue profit is called revenue reserve. Revenue profit is earned in the normal course of the business. Revenue reserve refers to the undistributed revenue profit. It is created for strengthening the financial position, replacing deprecialble assets, redeeming liabilities, declaring uniform rate of dividend and conducting research and development functions. If the reserve is not needed in the future, it can be distributed as dividend to the shareholders.There are two types of revenue reserve:a) General ReserveA reserve which is created out of the profit not for a specific purpose is known as general reserve.General reserve is used for general purpose as per the discretion of the management. Usually, general reserve is used for strengthening the financial position and meeting future contingencies and losses.b) Specific ReserveA reserve which is created out of the profit for a particular purpose is known as specific reserve. Such reserve can not be utilized for any purpose other than specified. Specific reserve is created by debiting the profit and loss appropriation account. It can be invested in outside securities. It serves for a specific purpose as to equalize dividend or to redeem a fixed liability or to replace a fixed assets or to conduct a research and development work.The following are the important types of specific reserve:* Dividend equalization fund* Sinking fund* Research and development fund


Examples of capital expenditure and revenue expenditure?

Capital expenditures are included in fixed asset costs. Examples of capital expenditures are purchase costs, legal charges delivery charges, and installation charges. Revenue expenditures include maintenance charges, renewal expenses, repair costs, and repainting costs.


Definition of incremental revenue?

Incremental Revenue is the increase of revenue between a new revenue and a previous revenue, thus the formula: Incremental Revenue = New Revenue - Previous Revenue

Related questions

What are the examples of revenue reserves?

Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.


What are the example of Revenues?

Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.


Is revenue reserve a free reserve?

no


What is consolidated reserve?

consolidated revenue reserve


When was Revenue Equalization Reserve Fund created?

Revenue Equalization Reserve Fund was created in 1956.


What is revenue reserve?

THE REVENUE RESERVE IS THAT PART OF PROFIT THAT HAS BEEN NOT GIVEN TO THE SHAREHOLDER BUT RETAINED IN THE BUSINESS FOR FURTHER GROWTH. HENCE REVENUE RESERVE AS PAR DEFINATION IS THE PART OF THE PROFITS RETAINED IN THE BUSINESS. == ==


What is the bookkeeping entry for a revenue reserve?

The bookkeeping entry for a revenue reserve is a debit to the retained earnings account and a credit to the revenue reserve account. This entry is made to set aside a portion of the profits as reserves for future use or to cover potential losses. By separating the revenue reserve from retained earnings, it allows for better tracking and management of the reserve funds.


What is revenue reserve and its example?

The revenue reserve is the retained earnings which are shown in the company's balance sheet as part of the shareholders' funds and are set aside to use to continue to pay dividends even if the company makes a loss. The example of the revenue reserve are the credit balance of the Profit and Loss Account, General Reserve and etc...


What is security premium reserve?

Securities premium reserve is the amount when securities are issued at premium that is more than their face value.


What is the difference between general reserve and revenue reserve?

A reserve which is created out of the revenue profit is called revenue reserve. Revenue profit is earned in the normal course of the business. Revenue reserve refers to the undistributed revenue profit. It is created for strengthening the financial position, replacing deprecialble assets, redeeming liabilities, declaring uniform rate of dividend and conducting research and development functions. If the reserve is not needed in the future, it can be distributed as dividend to the shareholders.There are two types of revenue reserve:a) General ReserveA reserve which is created out of the profit not for a specific purpose is known as general reserve.General reserve is used for general purpose as per the discretion of the management. Usually, general reserve is used for strengthening the financial position and meeting future contingencies and losses.b) Specific ReserveA reserve which is created out of the profit for a particular purpose is known as specific reserve. Such reserve can not be utilized for any purpose other than specified. Specific reserve is created by debiting the profit and loss appropriation account. It can be invested in outside securities. It serves for a specific purpose as to equalize dividend or to redeem a fixed liability or to replace a fixed assets or to conduct a research and development work.The following are the important types of specific reserve:* Dividend equalization fund* Sinking fund* Research and development fund


What is the difference between retained earnings and revenue reserve?

Capital reserve is capital set aside for specific future purpose such as building a new facility in the near future. It would be like you saving to buy a new a car. Reserve capital is money set aside for unforeseen issues. It's like a saving account or emergency fund that has no specific earmark.


Examples of revenue income?

Give me a example of Revenue Income, pls?