NABTEB Accounting 2025 Objective — Question 25

Question 25 of 60 from the National Business and Technical Examinations Board (NABTEB) Accounting 2025 Objective paper, with the correct answer and a full explanation.

A fund set aside out of profit and other surpluses to strengthen the financial position of a business is

A. capital
B. Debentures
C. premium

Explanation

Reserves are funds set aside from profits to strengthen the financial position of the business.

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