Why the provision is considered as expense and reserve is
considered as liability even if they both are allocated as
precautionary for specific and general purpose? pls Explain.



Why the provision is considered as expense and reserve is considered as liability even if they both..

Answer / mohamad

Provision is considering expense bcz we are making
provision against the profit, like Provision for bad debts,,

Reserve should be consider as a liability bcz we have
liable to pay that,, Ex: Devident Reserve,,,,,

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