It refers to the tallying of two sets of transactions. A capital reserve is one of the reserves that a business creates, out of the yearly profits, for any specific purpose. The feasibility of the project, and the value of the collateral, assumes a great deal of significance in case of commercial construction loans, while in case of residential construction loans, the credit score of the borrower is fundamental to obtaining the loan. For this you may need to consult your financial adviser or a lawyer specialized in business laws. Generally Accepted Auditing Standards Generally Accepted Auditing

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