Define Reserve & Provision?
Answers were Sorted based on User's Feedback
Answer / vellingiri
Reserve:
Reserve is created out of the profit of a company for the
purpose of distribution of divident and redemption of
shares/debentures etc.
Provision;
Provision is created for a particular purpose for
example income tax provision. So that particular provision
can be utilized for that particular purpose.
Is This Answer Correct ? | 32 Yes | 3 No |
Answer / adit
reserve is a part of divedent which company kept for itself for future growth and expansion.
Is This Answer Correct ? | 14 Yes | 5 No |
Answer / ashok
Reserve
Reserve is Created to Meet Future Unexpected Exp. or
Liability
provision
provison is Created to meet Expected expenses (but unknown
figure)of Accounting Period in Future.
Is This Answer Correct ? | 13 Yes | 6 No |
Answer / vijayakumar
Spelling of dividend not divident
In American accounting they use only the term provision or allowance In India now people use both in the same sence
Is This Answer Correct ? | 0 Yes | 0 No |
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