Which of the following actions does not result in the formation of a secret reserve?

Capital And Revenue Expenditure MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Capital And Revenue Expenditureauditing-mcqs › capital-and-revenue-expenditure
Published
27 Jul 2019
Last updated
28 May 2026

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Explanation

Secret reserves are typically created by understating assets or overstating expenses. Options A, B, and D involve such manipulations, while option C, showing consignment goods as real sales, does not create a secret reserve but rather misrepresents revenue.

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