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WAEC Accounting 2018 Objective — Question 25

Question 25 of 50 from the West African Examinations Council (WAEC) Accounting 2018 Objective paper, with the correct answer and a full explanation.

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The amount set aside out of profits to strengthen the financial position of the business is

  • A. provision
  • B. reserveCorrect
  • C. depreciation
  • D. surplus

Explanation

A reserve is an amount deliberately set aside from profit to strengthen the financial position of a business.

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