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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.
Provisions are charge against profit and Reserves are appropriation of profit.
A liability is generally anything that costs you money. A phone bill is a liability. A debt is a kind of liability. You can take out a loan for a car- that is a debt; something owed in the future.
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.
Working Capital is the difference between Current Assets and Current Liabilities.Net Worth is Total Assets -Total Liabilities current asset-current Liability=Working Capital working Capital Plus+Fixed Asset-LongTerm Liabilities = Net Worth in another word: (Current Asset+Fixed Asset)-(current Liability+Long Term Liability)= Net Worth Now you got it ?
A provision is when it's grater than 50% chance of happening where as a contingent is less than that. You show a provision on the accounts but not the contingent.
There is no difference between Contingent Liability and Off Balance Sheet Liability.
difference between third party liability and public liability
Provision for taxation is current liablity
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.
NO, it is not a liability it is a con-tra account
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Difference between horse liability and stableman coverage
In strict liability, there are certain defenses available whereas in absolute liability, there are none.
i must say accrued and provision is two different things,accrued is something paid to you but you can spend it,concerning provision is not the same.
The difference between employers liability and public liability are simple. Employer liability insurance covers only claims made by the employees against the company. Public liability covers claims against the company by the general public as well as third parties claims.
Liability - is something covered by law. Obligation - is something you're 'expected' to do.