________________________ represent(s)funds set aside for contingencies,such as legal action against the institution or a sinking fund to retire stock or debt in the future.
A)Undivided profits
B)Surplus
C)Preferred stock
D)Common stock
E)Equity reserves

Question

Quizplus · Accepted Answer

Equity reserves are specifically designated for covering contingencies or specific future financial obligations, such as legal actions against the institution or funds to retire stock or debt. These reserves are part of an organization's equity and are set aside to ensure financial stability and preparedness for unforeseen events or planned future expenditures.

________________________ Represent(s)funds Set Aside for Contingencies,such as Legal Action Against