Question

A reserve is an account

a. Set aside from profit for an unknown liability
b.Of loss from trading activities
c. Of profit from trading activities
d. Set aside from profit for specific purpose​

Answer 1

The correct option is;

d. Set aside from profit for specific purpose

Step-by-step explanation:

A reserve which is a term in accounting to define a portion of the profits of the business set aside to build the financial posture of the company by expanding the business or to grow to an higher operating level

A reserve account which can be referred to as a reserve fund, is an account meant to keep a portion of the business profits to serve a particular purpose in the future.