what diff. between laibilities and provision?

Answer Posted / sunil kumar

Liabilities refers to debts due from a business to others
either for money borrowed or for goods & services received
without making immediate payment.

whereas A provision in accounting is usually an estimate of
a cost that may take place in the future, The usual
treatment is to deduct the amount of the provision from the
balance of another account.

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are the steps involved in project implementation?

691


What is short term solvency ratio?

621


Tell me what is the equation for acid-test ratio in accounting?

509


I want to know accounting information in oracle apps projects costing module. i.e Which account is cr and which account db. Please help me.

1640


Why current assets Liability said & current Liability Assets said...?at tally ERP9

1347






When we received payment from creditors

1161


Opening stock 17499565 purchses 89693855 expanditure 1735800 deprciation 223309 patner salary 300000 interst paod 937500 provisions 119265 sales 91600120.adjustment 1 gross profit is 6.72percentage on sales.2.net profit is 3.10 percent on sales

1237


What is executive accounting?

668


I post Optional Voucher in Tally.ERP in which there is deduction of TDS is applied. But when I convert this voucher as regular voucher the TDS entry have to make again why so

1563


You are using the accounts approach to parallel valuation and classic assets accounting. You need to create a new financial statement version to valuation based of IFRS principles. In asset accounting, what posting options can you choose for the new depreciation area? (any 2 answer) Area post in real time Area posts APC directly and depreciation periodically Area posts APC only directly Area posts APC and depreciation periodically

962


Wha is difference between expenses and expenditure

1322


If balancing account is not assigned to company & is assigned to department wat will be the effects

1544


Define fictitious assets?

751


hi to all.... what is the treatment for Work-In-Progress in Tally...please answer for it as early as possible... thanks & regards

1630


payment voucher for advance salary

914