What is income. What is general reserve.

Question

Accepted Answer

Income is the money earned by an individual or organization. General reserve is the portion of profits kept aside for future use.

Income is the revenue earned by an individual or organization through various sources such as salary, business profits, investments, etc.
General reserve is a part of the profits earned by a company that is not distributed as dividends but is kept aside for future use such as expansion, research and development, or to cover unexpected expenses.
Income and general reserve are important financial concepts that help individuals and organizations plan their finances and ensure financial stability.
For example, a company may earn a profit of $100,000 in a year, out of which it may distribute $50,000 as dividends to shareholders and keep the remaining $50,000 as general reserve.
Income and general reserve are also important for tax purposes as they determine the taxable income of an individual or organization.

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