Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › A provision is made for what kind of item?
A provision is made for what kind of item?
AA known but uncertain expense
BStrengthening the business
CIssuing bonus shares
DRedeeming debentures
Answer & Solution
Correct answer: A. A known but uncertain expense
Provisions cover a known expense or liability of the current year whose exact amount is uncertain.
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