Question

Provisions are maintained for known liabilities it is true or false?

Answer 1

Answer:

hey!

Explanation:

Your answer is true.

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Answer 2

Answer:

Provisions are maintained for known liabilities it is true

Explanation:

What distinguishes a requirement from a liability?

Both financial modeling and accounting under the liabilities part depend on these statements. A provision denotes a responsibility with an ambiguous time and dollar amount. Warranties, income tax obligations, potential lawsuit costs, etc., are examples of conditions. They are recorded on a company's balance sheet and recognized by specific IFRS standards.

A provision is often a sum deducted from a company's earnings, even though the exact amount may be uncertain, to cover an anticipated liability or a decline in the value of an asset. A provision isn't a way to save money; instead, it's an early acknowledgment of impending responsibility.

Provisions:

Provisions are sums set aside by a business to cover any future losses. In other terms, a provision is an obligation whose timing and magnitude are unpredictable. On a company's balance statement, provisions are shown in the liabilities section.

• A provision denotes a responsibility with an ambiguous time and dollar amount.
• Warranties, income tax obligations, potential lawsuit costs, etc. are examples of provisions.
• They are recorded on a company's balance sheet and recognized following specific IFRS standards.

liabilities

According to the definition of a liability in financial accounting, a liability is an obligation an entity has to forgo future financial gains to other entities as a result of previous transactions or other past events[1], the resolution of which could lead to the transfer or use of assets, the rendering of services, or other future financial gains.

The qualities listed below characterize a liability:

• any short- or long-term borrowing from people or banks for enhancing a business's or an individual's income;
• An obligation or responsibility to others that must be satisfied by the supply of services, the transfer or use of assets, or any other activity that results in an economic gain, at a specific or foreseeable date, upon the occurrence of a particular event, or upon demand;
• An obligation or duty that binds the entity to another, giving it little or no leeway to settle without consent; and,
• a recent transaction or incident that obligates the subject organization.

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