alleryStart learning →Provision or reserve?
Exercise and reference answers
- Left
- Provision
- Items
- Item
- Charged to profit
- Answer
- Provision
- Item
- Meets a known cost
- Answer
- Provision
- Item
- Made before profit
- Answer
- Provision
- Item
- Kept from profit
- Answer
- Reserve
- Item
- Strengthens firm
- Answer
- Reserve
- Item
- Not a known cost
- Answer
- Reserve
- Right
- Reserve
- Instructions
- Swipe left for a provision, right for a reserve.
Explanation
_Source: syllabus Accountancy, Ch 7 'Depreciation, Provisions and Reserves'_
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