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Difference between reserve and provision?
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Difference between reserve and provision?
RESERVES
Reserve is the term which refers to the amount of money from the profit which is set aside to meet the future needs or problems of the company. Actually, the reserves are also called as retained earnings because some part of the earnings are retained by the organization and kept in the form of reserves to meet the future requirements of the company.
PROVISIONS
Provision is the term which refers to the money which is written off in the accounting books to cover certain expenses and losses which occur in the given accounting period. Actually, the amount written off is not incurred to the company but expected to incur in the current accounting period. Provisions are made to ascertain the true net profit of the company.
Reserve is the term which refers to the amount of money from the profit which is set aside to meet the future needs or problems of the company. Actually, the reserves are also called as retained earnings because some part of the earnings are retained by the organization and kept in the form of reserves to meet the future requirements of the company.
PROVISIONS
Provision is the term which refers to the money which is written off in the accounting books to cover certain expenses and losses which occur in the given accounting period. Actually, the amount written off is not incurred to the company but expected to incur in the current accounting period. Provisions are made to ascertain the true net profit of the company.
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Difference between reserve and provision?
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Difference between reserve and provision? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Difference between reserve and provision? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Difference between reserve and provision?.
Difference between reserve and provision? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Difference between reserve and provision? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Difference between reserve and provision?.
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