Commerce Exam > Commerce Videos > Provision & Reserves
Provision & Reserves Video Lecture - Commerce
FAQs on Provision & Reserves Video Lecture - Commerce
| 1. What are provisions and reserves in accounting? |  |
Ans. Provisions and reserves are accounting concepts used to set aside funds for future expenses or uncertainties. Provisions are specific amounts set aside for known liabilities or potential losses, while reserves are general funds set aside for future use or contingencies.
| 2. How are provisions and reserves different from each other? | |
Ans. The main difference between provisions and reserves lies in their purpose and timing. Provisions are made for known liabilities or potential losses that have a specific amount and are expected to occur in the near future. Reserves, on the other hand, are more general funds set aside for future use or contingencies without a specific timing or amount.
| 3. What is the purpose of creating provisions and reserves? | |
Ans. The purpose of creating provisions and reserves is to ensure that a company has enough funds to cover future expenses or uncertainties. Provisions help in accurately reflecting the financial position by accounting for known liabilities or potential losses. Reserves, on the other hand, provide a safety net for the company to handle unexpected expenses or future investments.
| 4. Can provisions and reserves impact a company's financial statements? | |
Ans. Yes, provisions and reserves can impact a company's financial statements. Provisions are recorded as expenses in the income statement, reducing the company's profits. Reserves, on the other hand, are typically shown as a part of equity in the balance sheet, indicating the company's retained earnings or accumulated profits.
| 5. Are there any legal or regulatory requirements for creating provisions and reserves? | |
Ans. Yes, there are legal and regulatory requirements for creating provisions and reserves. Accounting standards and regulations may specify the types of provisions that need to be created for certain liabilities or losses. Additionally, companies may be required to disclose the nature and amount of their reserves in their financial statements to provide transparency to investors and stakeholders.
Related Exams
About this Video
|
4.96/5 Rating |
|
Nov 08, 2024 Last updated |
Provision & Reserves for Commerce2024 is part of Commerce preparation. The notes and questions for Provision & Reserves
have been prepared according to the Commerce exam syllabus. Information about Provision & Reserves covers all important topics
for Commerce2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Provision & Reserves.
Description
Video Lecture & Questions for Provision & Reserves Video Lecture - Commerce - Commerce full syllabus preparation | Free video for Commerce exam.
Information about Provision & Reserves
Here you can find the Provision & Reserves defined & explained in the simplest way possible. Besides explaining types of Provision & Reserves
theory, EduRev gives you an ample number of questions to practice Provision & Reserves tests, examples and also practice Commerce tests.
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Previous Year Questions with Solutions
,mock tests for examination
,Exam
,Semester Notes
,ppt
,Viva Questions
,MCQs
,Important questions
,Objective type Questions
,Provision & Reserves Video Lecture - Commerce
,Free
,past year papers
,shortcuts and tricks
,study material
,Provision & Reserves Video Lecture - Commerce
,Extra Questions
,Summary
,Sample Paper
,practice quizzes
,video lectures
,Provision & Reserves Video Lecture - Commerce
;
Study Provision & Reserves on the App
Students of Commerce can study Provision & Reserves alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Provision & Reserves,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Provision & Reserves is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup