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Revenue Reserves - Retained Earnings
These are undistributed earnings. Those reserves are retained for the given reasons like:
A. To create up for the fall in profits so as to maintain acceptable risks.
B. To sustain growth via plough backs. Such are cheap source of finance.
C. They are required to boost the company's credit rating thus they enable more finance to be received.
D. It lowers the company's gearing ratio - reduces chances of liquidation/receivership.
What are the financial fluctuations? Financial Fluctuations: a. Financial market fluctuations can be a basis of macroeconomic instability. b. Are markets irrational? c
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Quetion1: You are earning 5.2 percent on a certificate of deposit. Inflation is running 3.5 percent. What is the real rate of return on your investment? Question2: Search for
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