Gujarat BoardEnglish MediumSTD 11 CommerceAccountP2 C3 Provisions and Reserves2 Marks
Question
State the characteristics of provision.
✓
Answer
Characteristics of provision are as under:
$(1)$ Provision is an amount appropriated from profit or Income for specific purpose.
$(2 )$ Provision is an amount appropriated from profit for probable expenses or losses or liabilities for which the amount cannot be determined accurately.
$(3 )$ Provision is appropriated out of profit and loss account.
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