Question

short term provision example

Answer 1

Answer:

provision for bad debt, provision for discount, provision for depreciation etc.

Answer 2

1) Short-term bank loans. These loans often arise when a company sees an immediate need for operating cash. Short-term bank loans are due within a year.

2) Accounts payable. This refers to money owed to suppliers or providers of services. A bakery's accounts payable might include invoices from flour and sugar suppliers, or bills from utility companies that provide water and electricity.

3) Wages. These are payments due to employees.

4) Lease payments. Though lease agreements are often categorized as long-term debt, payments that are due within the year are considered short-term debt.

5) Income taxes payable. This refers to taxes due to the government that have not yet been paid.