1
Question
A provision is a ___________.
A provision is a ___________.
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Solution
The correct option is D Specific reserve
Specific reserve.A Provision is the amount written off or retained by way of providing depreciation, renewals or diminution in the value of assets or retained by way of providing for any liability of which the amount cannot be determined with substantial accuracy. In other words, Provision is an amount set aside out of income or profits. It is the retention of profit, made temporarily, for a specific purpose. Therefore, provision may be considered as a specific reserve.
Specific reserve.
A Provision is the amount written off or retained by way of providing depreciation, renewals or diminution in the value of assets or retained by way of providing for any liability of which the amount cannot be determined with substantial accuracy. In other words, Provision is an amount set aside out of income or profits. It is the retention of profit, made temporarily, for a specific purpose. Therefore, provision may be considered as a specific reserve.
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