what is the difference between PROVISION & RESERVE ?
- 3 Answers
- 15645 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
What is Bitcoin?
Explain sale and lease back.
What does the government do to curb the revenue deficit?
What is the education qualification required for po exam?
What is 'banknet'?
What Is The Difference Between Accounts Payable And Accrued Expenses Payable?
What is Balance of payments adjustment mechanism?
realationship bewteen bank& customer.
What are functions of SEBI?
What are the advantages proprietary firms?
What is needed for insurance?
What is capitalization and also explain its importance?
What Are The Effects Of Depreciation?
What leads assets to turn into a private equity?
What do you understand by the gdp of the country?
