Economy, asked by mouazzam300, 3 months ago

How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.​

Answers

Answered by sam7291b
1

Answer:

Provision refers to an amount that is kept aside from a company's profit in order to cover probable expenses arising in future or a possible reduction in the value of an asset. ... It appears in the income statement in the form of expenses and is recorded as a current liability in the balance sheet.

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