difference between accrual,payable and provision
Answers were Sorted based on User's Feedback
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 |
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 |
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 |
what is the accounting treatment for contingent laibility?
what is the difference between outstanding & accrued?
How can entry made if loan transfer from reliance to tata finance
EXPAND______________RRB
what are the 6 M's of management?
26 Answers Management, Ram Infotech, State Bank Of India SBI,
hi gurus , plz can anybody forward ur cv of accounts/finance related , exp of 4+ years to afreenjuveriya@yahoo.com
Mac Purchased on 15th Jan 12000/- 30th June Machinery damaged due to Fire Accident 31st Dec received the Insurance Premium 13000/-. Pass the Journal Entry for all the above three
what are the various questions asked on excel in an interview
2 Answers Asian Paints, Essar, Vsun Mobiles,
explain Dual entry concept
What are two questions that an owner might be able to answer by looking at accounting information?
What do you mean Business
vwhy a variable cost is said to be variable?