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What is a provision |
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Answer» The amount retained off or written off by way of providing for depreciation etc. A provision is an amount set aside for the probable, but uncertain, economic obligations of an enterprise. A provision is an amount that you put in aside in your accounts to cover a future liability. ... When accounting, provisions are recognized on the balance sheet and then expensed on the income statement. The amount written off to meet any known liability in the future but the amount can not be accurately determined is known as provision |
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