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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.
Cash and Marketable Securities Management The management of marketable and cash securities is single of the key areas of working capital management. Because cash and marketabl
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