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Reserve -The funds that a company sets aside to meet future unknown losses.
Provision- the funds that a company set aside to meet future known losses
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Difference between provision for bad debt and reserve for bad debt?
Provisions and Reserves are the amount setaside out of profits. When the amount is set aside for a particular purpose it is called a provison. Examples for this is Provision for Baddebts and provision for Depreciation and Provision for Discounts on Debtors. when the amount is setaside for particular purpose is called a provision whereas Reserve is the amount setaside out of profit but not for particular purpose. In most cases provision is incorrectly described as Reserve. One cannot create Reserve for baddebts.
Difference between provision and reserve?
Provisions are charge against profit and Reserves are appropriation of profit.
Explain the provision to statutory reserve given is the banking regulation act?
15 percent of profit after tax.
What does insurance provision mean?
Insurance provision means the conditionality to be adhered to by both the insured and the insurer,as embedded in an insurance policy bond.
Difference between provision for reserve fund and reserve fund?
Provisions are those where the liability existence is certain, but the amount of liability cannot be determined with substantial accuracy. In case of reserves, the liability is not known. but some amount of profits are kept aside for meeting the contingencies that might become actual liabilities.
What is reserve and provision?
A provision is a charge against the profits of a Company (or a set-aside) while a reserve is a transfer of profits. You could also call reserve a book entry, or a below the line adjustment. Provision is made irrespective of profits, for instance, a provision against Bad and Doubtful debts. A reserve is created out of, and only if there exists, profits.
Difference between provision for bad debt and reserve for bad debt?
Provisions and Reserves are the amount setaside out of profits. When the amount is set aside for a particular purpose it is called a provison. Examples for this is Provision for Baddebts and provision for Depreciation and Provision for Discounts on Debtors. when the amount is setaside for particular purpose is called a provision whereas Reserve is the amount setaside out of profit but not for particular purpose. In most cases provision is incorrectly described as Reserve. One cannot create Reserve for baddebts.
How are loan loss provision and loan loss reserve recorded?
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What mean by transitional provision?
transitional provision
Difference between provision and reserve?
Provisions are charge against profit and Reserves are appropriation of profit.
What does provision mean in Tagalog?
The word "provision" in Tagalog is translated as "pag-aalaga" or "paghahanda." It refers to the action of providing or supplying something, like food, supplies, or support.
Explain the provision to statutory reserve given is the banking regulation act?
15 percent of profit after tax.
Reserve for doubtful debts definition in accounting?
The reserve for bad debts is a provision set aside for debts (debtors) in the balance sheet that might not be collectable. This provision can be either specific or general: * Specific bad debt provision - a provision set aside for specific or identified individual debts considered not collectable. This provision is allowable for tax deduction * General bad debt provision - a provision set aside for non specific debts, it might be for eexample 100% of all debts over 90 days old and 50% of debts over 60 days old. It is a general provision to cover the fact if any of these debts go bad and is not an allowable deduction for tax purposes
What is the difference between Reserves and Provision?
Reserve is a an amount set aside from the profit when it is calculated. On the other hand provision is an amount charged against profit and loss in order to assist in calculating the accurate profit.
What does energy provision mean?
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What does the French word 'reserve' mean?
The French word "reserve" can mean reserve, backup, or a place set aside for a certain purpose. It can also refer to a nature reserve or a reservation.
What does the word Jiren mean in the Bible?
provision
