What is a provision

1.	What is a provision
Answer» The amount retained off or written off by way of providing for depreciation etc.<br>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.<br>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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