The accounting and fiscal standards of countries allow corporations to build general provisions (or hidden reserves) in

Question:

The accounting and fiscal standards of countries allow corporations to build general provisions (or "hidden reserves") in anticipation of foreseen or unpredictable expenses. How would this practice affect the book value of a and its ratio of market price to book value?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...