what is the difference between PROVISION & RESERVE ?
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
State types of mutual funds schemes.
Name Different Terms of Issue of Shares?
which kind of questions can be asked to a mba in sbi interview?
Define the role of IT Officer in Banking sector?
WHAT IS THE MEAN BY DEALER MANAGEMENT IN THE AUTO MOBILE COMPANY?
How can investment in mutual fund be beneficial?
Tell about Foreign Exchange Reserve?
Explain current ratio.
Who is the regulator of SEBI?
Are you an extrovert or an introvert?
What are different types of 'non-tax receipts.'?
Explain dematerialization?
What major factors drive M&A? What are the major factors driving M&A in your sector? How do you see them evolving in the next year?
What is NATO? List some members of NATO?
Any idea about 'Freedom of Religion'?