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Basically it is a reserve however it should be carried as a liability on the books until paid then espense it however if the Co is for Sale You may show it as a reserve asset due to the fact that the full liability may never be incurred
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Is provision for tax is a current liability?
Provision for taxation is current liablity
Should Provision for depreciation comes under current liabilities?
All provisions comes under current liabilities so provision for depreciation is as well because it is made for one fiscal year only.
What is the difference between liabilities provisions and contingent liabilities?
Provision made for known or specified liabilities which may occur in future is provision for liabilities whereas Contingent liabilitiy is provision made for unknown liabilities which may or may not occur in future.
If current liabilities are 7714 and total liabilities are 18187 what is the ratio of current liabilities to total liabilities?
Current Liabilities to Total Liabilities Ratio = Current Liabilities / Total Liabilities Current Liabilities to Total Liabilities Ratio = 7714 / 18187 Current Liabilities to Total Liabilities Ratio = 0.42 or 42%
What do current liabilities mean in accounting?
Current Liabilities in accounting are amounts that are owed by a business. The two types of current liabilities are short-term and long-term liabilities.
Is provision for tax is a current liability?
Provision for taxation is current liablity
What is provision for taxation?
The amount which is kept by the company to pay taxes against its profits is known as provision for taxation. Provision for taxation considered as current liability.
Should Provision for depreciation comes under current liabilities?
All provisions comes under current liabilities so provision for depreciation is as well because it is made for one fiscal year only.
Is Provision for income taxes a current asset or liability?
Provisions are defined as liabilities of uncertain timing and amount. 2 types of provisions 1. provision that are in the nature of liabilities ( eg provision for warranty) 2. provisions that are in the nature of asset valuation ( eg provision for doubtful debt)
What is the difference between liabilities provisions and contingent liabilities?
Provision made for known or specified liabilities which may occur in future is provision for liabilities whereas Contingent liabilitiy is provision made for unknown liabilities which may or may not occur in future.
If current liabilities are 7714 and total liabilities are 18187 what is the ratio of current liabilities to total liabilities?
Current Liabilities to Total Liabilities Ratio = Current Liabilities / Total Liabilities Current Liabilities to Total Liabilities Ratio = 7714 / 18187 Current Liabilities to Total Liabilities Ratio = 0.42 or 42%
Should provision comes under current liabilities?
Yes provisions are made for one fiscal year only and every year it is change so it is current liability
What do current liabilities mean in accounting?
Current Liabilities in accounting are amounts that are owed by a business. The two types of current liabilities are short-term and long-term liabilities.
What firm's current liabilities?
Current liabilities are those liabilities and payables that would be paid withing 12 months
What is current liabilities to total assets ratio?
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
What do current liabilities include?
Current liabilities included all liabilities payable in current fiscal year like accounts payable, current portion of long term liability etc.
What are non current liabilities?
Liabilities which are not due in current fiscal year are called non current liabilities like long term bonds, share capital etc.
