What are reserves on balance sheet?
Balance sheet reserves are liabilities that appear on the balance sheet. The reserves are funds set aside to pay future obligations. Insurance companies will often set up balance sheet reserves that equal the value of claims filed but not yet paid.
What do you mean by reserved resources?
Reserve resources are those which we are not extracting them at present in spite of technological availability. They are stored to meet world’s future requirements. For e.g., storage of water in the dam to meet our energy requirement (for generating electricity) of future (whole year).
What is the difference between provision for bad debts and reserve for bad debts?
Difference between reserves and provisions is as follows Reserve is an appropriation of profit and provision is a charge on profits. But it says the value in excess of provision for bad debts is to be transferred to Reserve for bad debts.
Why reserve is a liability?
Reserves are considered on the liability side of a balance sheet because they are sums of money that have been set aside to be paid out at a future date. As these reserves don’t actually belong to the company, they are not considered assets but liabilities.
Who is a reserved person?
The definition of reserved is saved for someone or some purpose, or is a person who doesn’t share his feelings, thoughts or emotions. When a seat is saved in the front row, this is an example of a reserved seat. A person who doesn’t share his emotions is an example of someone who would be described as reserved.
What are the types of reservation?
Types of Reservation
- Guaranteed reservation.
- Non –guaranteed reservation.
How does a resource become reserve?
Answer: The resource become a reserve due to the change in its utility and value. It is because the ultimate use of a mineral reserve is either to be physically worked out or made non-viable because of the changing economic, environmental, technological, and social circumstances.
What are potential resources?
Potential resources are known to exist and may be used in the future. Actual resources are those that have been surveyed, their quantity and quality determined, and are being used in present times. For example, petroleum and natural gas is actively being obtained from the Mumbai High Fields.
What is the difference between potential and reserve resources?
Potential resources are the sources that have been recognized but are not yet practiced due to the shortage of availability of technology. Reserves Resources are the sources which have been recognized and are completely maintained for present and future application. These are resources whose total amount is known.
What reserve means?
something kept or stored for use or need; stock: a reserve of food. a resource not normally called upon but available if needed. a tract of public land set apart for a special purpose: a forest reserve. an act of reserving; reservation, exception, or qualification: I will do what you ask, but with one reserve.
What is the difference between reserve and surplus?
Reserves are usually money earmarked by the company for specific purposes. The surplus is where all the profits of the company reside.
What is difference between provision and reserve?
A reserve is an appropriation of profits for a specific purpose. In short, a reserve is an appropriation of profit for a specific purpose, while a provision is a charge for an estimated expense. …
Who creates secret reserve?
As per the provisions of the Companies Act a joint stock company is prohibited to create secret reserves but in the case of financial companies like the banking companies, insurance companies, and electricity supply companies have the provisions to create secret reserve.
Which type of account is general reserve?
03 June 2015 It is real account not nominal accounts. Cash, accounts receivable, accounts payable, notes payable, owner’s equity and all reserves are all real accounts that are found on the balance sheet.
What are the objectives of creating reserve?
The main objective to create a reserve is to make the business’s financial position strong. A reserve helps business in unfavourable circumstances in future. A reserve helps to write off losses occurred in the business transactions.
Is Reserve short for reservation?
Reserves are only in Canada and reservations are only in the United States. Reserves and Reservations are quite different. In Canada there can be dozens of reserves within treaty boundaries while in the United States reservations generally cover the entire treaty area.
Which is example of fictitious assets?
But it does not meet the definition of the asset that is why it is referred as fictitious. Marketing expenses, bank NPAs, discounts on the issue of shares, and debenture losses are few examples of fictitious assets.
What are the 3 types of reserves?
Reserves in accounting are of 3 types – revenue reserve, capital reserve and specific reserve.
Are secret reserves shown in the balance sheet?
False. Secret reserves are the reserves that are not shown in the balance sheet because they are not disclosed to the shareholders, competitors and government either to evade tax, show bad financial position to the competitors etc.
Is general reserve an asset or liability?
This general reserve will be considered as part of the profit and loss appropriation account of the company. It will be shown under the head ‘reserves and surplus’ on the liabilities side of the balance sheet of the company.
What is secret reserve?
A 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.
Can non Natives live on a reservation?
Non-Natives can live in reservations as long as they work for an agency that provides housing or lives with a Native family who lives in the reservation. Non-Natives are not permitted to buy any property or rent any property as long as it is on native lands.
What are the two types of reserves?
There are two main kinds of reserves: revenue reserves and capital reserves. They are taken from different sources of income and are usually set aside for different purposes.
Is Depreciation a reserve or provision?
Provision for depreciation is an alternative term used for accumulated depreciation expenses. Depreciation expense is recognized on the income statement as a non-cash expense that reduces the company’s net income. Explanation: Provision for bad debts is a liability for the business and is not any reserve.
Can anyone live on a reserve?
8) Can anyone live on a reserve? Generally, reserve residents are members of the Nation where they reside. According to the Indian Act, only registered Nation members may live permanently on a reserve unless the Nation has adopted a residency bylaw that regulates who has the right to live on the reserve.
What is reserves in geography?
Based upon what has been discovered and its cost of recovery, only a segment of the total resources can be considered as reserves. Thus, reserves are resources that are available under current market conditions (cost and technology). A significant amount of resources could be known to be present.
Is it good to be reserved?
They find it easy to stay in control of how they feel, which means they’re normally very good at maintaining a steady, stable mood. Rather than the highs and lows of people who are outgoing and full of energy, reserved people can keep things nice and level.