Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / gangadhar
A secret reserve is created by the following methods:
1. By under valuation of assets much below their cost or
market value, such as investment, stock in trade, etc.
2. By not writing up the value of an asset, the price of
which has permanently gone up.
3. By creating excessive reserve for bad and doubtful debts
or discount on sundry debtors.
4. By providing, excessive depreciation on fixed assets.
5. By writing down goodwill to a nominal value.
6. By omitting some of the assets altogether from balance
sheet.
7. By changing capital expenditure to revenue account and
thus showing the value of assets to be less than their
actual value.
8. By overvaluing the liabilities.
9. By the inclusion of fictitious liabilities.
10. By showing contingent liabilities as actual liabilities
| Is This Answer Correct ? | 35 Yes | 2 No |
Post New Answer View All Answers
What Is Trend Analysis?
What is the role of SEBI in Economy?
What in external debt economy?
What are the other services provided by the bank?
What is the role of SEBI?
What has the market been doing? Why? What do you think it will do in the coming 12 months?
Why do you want to join the banking sector?
What is proprietary ratio? What are its components?
Explain in a sentence or two, each of the elements of a Business Plan and why it is necessary.
What is the risk coverage of PM Jeevan Jyoti Bima Yojana?
What types of shares can a company issue to raise long term funds?
What does sacp stand for?
What are the responsibilities of bill collectors?
Name Different Kinds of Debentures According to Redemption Point of View?
What is your greatest concern about investment banking right now?
