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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.
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What is difference between fund and reserve?
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What is the difference between person fund vs account fund?
The difference between person fund and account fund is that a person fund is transferred to the recipient in person, while the account fund is transferred to the account of the recipient.
What is provision fund?
A provision fund is a financial reserve set aside by an organization to cover anticipated future liabilities or expenses. It is commonly used in accounting to ensure that sufficient funds are available to meet obligations such as bad debts, warranties, or legal claims. By creating a provision fund, companies can better manage risks and ensure financial stability. This practice also helps in accurately reflecting the financial position of the organization in its financial statements.
When was Revenue Equalization Reserve Fund created?
Revenue Equalization Reserve Fund was created in 1956.
What is the purpose of a debt service reserve fund in a revenue bond issue?
A fund in which moneys are placed in reserve to be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The debt service reserve fund may be entirely funded with bond proceeds at the time of issuance, may be funded over time through the accumulation of pledged revenues, or may be funded only upon the occurrence of a specified event (e.g., upon failure to comply with a covenant in the bond contract). In addition, issuers may sometimes authorize the provision of a surety bond or letter of credit to satisfy the debt service reserve fund requirement in lieu of cash. If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the fund from the first available revenues.
What is difference between fund and reserve?
ok ok
Difference between Debenture Redemption Reserve and Capital redumption Reserve?
The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.
What was the Reserve Fund?
The Reserve Fund was the first money market mutual fund
When was the Reserve Fund created?
The Reserve Fund was created in 1971
What is the difference between person fund vs account fund?
The difference between person fund and account fund is that a person fund is transferred to the recipient in person, while the account fund is transferred to the account of the recipient.
Was the Reserve Fund the first money market mutual fund?
The Reserve Fund was the first money market mutual fund
What is provision fund?
A provision fund is a financial reserve set aside by an organization to cover anticipated future liabilities or expenses. It is commonly used in accounting to ensure that sufficient funds are available to meet obligations such as bad debts, warranties, or legal claims. By creating a provision fund, companies can better manage risks and ensure financial stability. This practice also helps in accurately reflecting the financial position of the organization in its financial statements.
What is the difference between capital reserve and reserve capital?
Capital reserve is a reserve created to deal with general, unspecified contingencies such as inflation. It is a fund set aside for the specific purpose and can not be distributed for other uses. Normally it is legally not distributable as dividends to shareholdersReserve Capital is the part of the Authorised capital which is not yet called up
When was State General Reserve Fund created?
State General Reserve Fund was created in 1980.
When was Revenue Equalization Reserve Fund created?
Revenue Equalization Reserve Fund was created in 1956.
What is the purpose of a debt service reserve fund in a revenue bond issue?
A fund in which moneys are placed in reserve to be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The debt service reserve fund may be entirely funded with bond proceeds at the time of issuance, may be funded over time through the accumulation of pledged revenues, or may be funded only upon the occurrence of a specified event (e.g., upon failure to comply with a covenant in the bond contract). In addition, issuers may sometimes authorize the provision of a surety bond or letter of credit to satisfy the debt service reserve fund requirement in lieu of cash. If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the fund from the first available revenues.
What is development allowance reserve?
A development allowance reserve is a financial provision set aside by a company or organization to fund future development projects or initiatives. This reserve is typically allocated from profits or budget surpluses and is intended to cover costs related to research, innovation, or infrastructure improvements. By establishing such a reserve, entities can ensure they have the necessary resources to support growth and adapt to changing market demands.
