Define Reserve & Provision?

Question Posted / lokesh khintolia

Answers were Sorted based on User's Feedback

Define Reserve & Provision?..

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

Define Reserve & Provision?..

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

Define Reserve & Provision?..

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

Define Reserve & Provision?..

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

Post New Answer

More Accounting AllOther Interview Questions

What is account