Accountancy, asked by asingh90262, 4 months ago

Define provision and reserve. ​

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Answered by jaatsahab67
2

A reserve is an appropriation of profits for a specific purpose. ... A provision is the amount of an expense or reduction in the value of an asset that an entity elects to recognize now in its accounting system, before it has precise information about the exact amount of the expense or asset reduction.

Answered by Anonymous
2

Answer:

A reserve is an appropriation of profits for a specific purpose. ... A provision is the amount of an expense or reduction in the value of an asset that an entity elects to recognize now in its accounting system, before it has precise information about the exact amount of the expense or asset reduction.

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