Accountancy, asked by kaandekarsowmya7466, 1 year ago

Give the meaning of long term provision.

Answers

Answered by ayesha123

A provision is an amount of cash set aside from the profits in the accounts of a business to cover a known liability or to account for depreciation of an asset.

deepeshbabu: Yes, provision is the amount of the cash... And business provide depreciation according to the yearly. Straight line method.... Exam.... Jaise koi hamari asset hai... Uspe kitna dep lgana hai jaise 10% dep per yearly...... ☺☺☺☺☺

deepeshbabu: jaise hmari ek asset 200000 ki hai.. Ok.... Humne us asset pe itna dep lgaya ki uski value 0 ho gyi... Agar business man us asset ko sale krega toh wo money uski income hogi... ☺☺☺☺

Answered by ananya162

hloo frnd your answer is as follows...
In financial accounting, a provision is an account which records a present liability of an entity. The recording of the liability in the entity's balance sheet is matched to an appropriate expense account in the entity's income statement.
in other words, a provision is an amount set aside for the probable, but uncertain, economic obligations of an enterprise.

hope it may helps u☺☺

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