It must be noted that the amount of provision for expenses and loss is a charge against the revenue of the __________ year.

Current

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None

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Solution

The correct option is A Current
Current.
Provision is an amount set aside out of current earnings considered necessary to provide for all expenses and losses that are expected to arise out of transactions entered into, during the accounting period. Provision is made following the prudence concept of accounting which holds "provide for anticipated expense and losses but do not provide for anticipated incomes."

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Similar questions

Q. The adjustment entry to write off deferred revenue expenditure is?

Deferred Revenue Expenditure A/c To Profit & Loss A/c	Dr.
Expense A/c To Profit & Loss A/c	Dr.
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for the year ended March 31, 2017

$\begin{matrix} Particulars & Note to & 2015 - 16 & 2016 - 17 Accounts & Amount (Rs.) & Amount (Rs.) Revenue from Operations & 50, 00, 000 & 80, 00, 000 Expenses: (a) Employee Benefit Expenses : 10 % of Revenue from Operations (b) Other expenses: & 10, 00, 000 & 12, 00, 000 \end{matrix}$

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