Question

Reserve fund invested in financing bank is a

• A. Liability
• B. Asset
• C. Expense
• D. Capital

Answer 1

Answer:

B. Asset

The uncalled portion of capital is also known as Reserve Capital Reserve Capital is the part of authorized capital of a company or cooperative society that has not yet been called for payment. It is kept aside to be called upon only in case of winding up or when the society needs additional funds. It is not demanded from members during normal operations. Other related terms: Called-up Capital: Portion of capital that members have already been asked to pay. Paid-up Capital: Portion of capital actually paid by members.