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A provision is an amount set aside in the financial statements to cover a probable future expense or loss that is uncertain in timing or amount, reflecting a company's best estimate. In contrast, a liability is a present obligation resulting from past events that is expected to result in an outflow of resources, such as debts or Accounts Payable, with a definite amount and timing. Essentially, provisions are estimates for future uncertainties, while liabilities are recognized obligations that are usually more certain.
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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.
Difference between provision and reserve?
Provisions are charge against profit and Reserves are appropriation of profit.
What is the difference between a debt and a liability?
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.
Are Provisions debit or credit?
Provisions are typically recorded as a liability on the balance sheet, which means they are credited. When a provision is recognized, it reflects an obligation that the company expects to settle in the future, resulting in a corresponding debit to an expense account. Thus, the initial entry involves a debit to the expense and a credit to the provision liability.
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.
What is difference between provision liability and continget liability?
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.
What is the difference between contingent liability and off balance sheet liability?
There is no difference between Contingent Liability and Off Balance Sheet Liability.
Is there a difference between public liability and third party insurance?
difference between third party liability and public liability
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.
Is provision for tax is a current liability?
Provision for taxation is current liablity
Is provision for depreciation is current liability?
NO, it is not a liability it is a con-tra account
What is the difference between liability and indemnity?
14876
Horse Legal Liability vs stableman's liability?
Difference between horse liability and stableman coverage
What is the difference between an accrued and a provision?
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.
What is the difference between absolute and strict liability?
In strict liability, there are certain defenses available whereas in absolute liability, there are none.
What is the difference between employers' liability insurance and public liability insurance?
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.
What the difference between Professional Liability and Practice Insurance?
No difference. It's the same thing
