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The amount set aside out of profits to strengthen the fin...

The amount set aside out of profits to strengthen the financial position of the business is

A.

Position

B.

Reserve

C.

Depreciation

D.

Surplus

Correct answer is B

A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so forth.