Accounting theory and practice, Volume 2 (of 3) : a textbook for colleges and…

2 by Roy B. Kester, Kester, Roy B. (Roy Bernard), 1882-1965

Chapter 122: 3. A sufficient surplus should be accumulated (in addition to the

Chapters

Chapter 122: 3. A sufficient surplus should be accumulated (in addition to the

provisions required to maintain wasting capital assets) for the purpose of making good losses due to shrinkage in values of fixed assets arising from causes other than the ordinary operations of the company. This provision must, however, be considered more a question of policy than a requirement of sound accounting.”
50 words