Question

Q. Provisions are necessary for:
To ascertain the true profit or loss
To ascertain true financial position
To provide for non losses in the future
All of the above
Pls tell correct option accounts​

Answer 1

Answer:

Provisions are important because they account for certain company expenses, and payments for them, in the same year. This makes the company's financial statements more accurate. Provisions are not a form of savings. Because the expense is 'probable', the amount set aside is expected to be spent.