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Provisions & Reserves | Differnces | #provision #reserves @accountsdecoder
1. What is a Provision? A Provision is an amount set aside from a company's earnings to cover a known liability, but the exact amount or the date it will occur is uncertain. 2. What is a Reserve? A Reserve is an appropriation of a company's retained earnings or profits. It is money put aside out of net profits to strengthen the company’s ...
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