provident fund is an asset or liability?
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provided fund is liability
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Answer:
A Provident fund is a liability
Explanation:
A Provident fund is a fund that is collected from all the employees of the firm and is paid back to the employee upon their retirement.
Since it is contributed by employees therefore a business is liable to pay back provident funds to their employees.
Hence Provident fund is a liability for the firm which is being paid to the employees during their retirement.
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