what is the difference between PROVISION & RESERVE ?
- 3 Answers
- 15425 Views
- Capital IQ, FactSet Systems, HDFC, IQ, I also Faced
- E-Mail Answers
Answer Posted / guest
PROVISION : Provision is a charge to P&L a/c.
RESERVE : Reserve is an appropriation of profit.
provision : it is because of legal necessity.
reserve : it is a matter of finavial prudence.
provision : creation of provision decreases the funds of
the business.
reserve : creation of reserve increases the working capital
of the business.
provision : can be made irrespective of profit / loss
reserve : cannot be made when there is loss.
provision : are made against expected losses.
reserve :safe guard against unexpected losses and there by
to strengthen the financial position of the company
| Is This Answer Correct ? | 94 Yes | 6 No |
Post New Answer View All Answers
Which kind of operations are included in treasury operations?
EXPLAIN THE TERMS OF ANY RECENT MERGER WHICH HAD TAKEN PLACE IN INDIA.
What is the deportment of RBI monetary policy?
What is the use of Balance Sheet?
Who regulated Capital Market?
What is a fairness opinion?
Mention the difference between bills payable and bills receivable?
What are the advantages and disadvantages of proprietary firms?
why to choose merger and acquisition as a field for career?
Expand BSBDA.
If Inventory Is Understated At The End Of The Year, What Is The Effect On Net Income?
By sitting at home how can you send money?
What is crar?
What is Public expenditure?
I have qualified in the Axis Bank aptitude.Now my interview is on Nov.So pls tell me what questions are asked in the interview and tell me the reference book for interview in Axis Bank.
