difference between accrual,payable and provision

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difference between accrual,payable and provision..

Answer / vinod k balasubramaniam

Accrual is made for the known expenses/Revenue - where in
the the liability to pay/receipt for either goods or
services is known in advance!

Example: Accrued Rent - Both Payable and Receivable as the
case may be!

Whereas, Provision is made on expenses/liability where we
are not sure about the exact outstanding! Provision on
expenses generally made based on either past figures or
invoices!

Example: Provision for Bad & Doubtful Debts, Provision for
Income Tax, etc...

Is This Answer Correct ?

54 Yes

3 No

difference between accrual,payable and provision..

Answer / jagadeesh

Accrual is income earned but not received or expenses
incurred but not spent. Provision is making provision from
the profit for a specified or known expense which is to be
met in unknown future.

Is This Answer Correct ?

24 Yes

2 No

difference between accrual,payable and provision..

Answer / a.santosh

Accrual is income earned but not received or expenses incurred but not spent. Provision is making provision from the profit for a specified or known expense which is to be met in unknown future.

Is This Answer Correct ?

3 Yes

1 No

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