Write the difference between provision and reserve
Answers
Answered by
1
Answer:
a reserve is an appropriation of profits of a specific purpose in short a reserve is an appropriation of profit for a specific purpose while a provision is a charge for an estimated expense
Answered by
1
Answer:
Provision
- Provision is a sum of money that has been kept away to meet anticipated financial obligations in future.
- Creation of provision is mandatory as per law.
Reserve
- Reserve is a sum of money set aside from the total earnings of a company to meet unforeseen contingencies.
- Creation of reserve depends on the availability of profit
Explanation:
The difference between provision and reserve
Similar questions