Objectives of provision
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Rishabh Sharma 8 years, 3 months ago
- 1 answers
Test
Related Questions
Posted by Garima Gaur 1 year, 8 months ago
- 0 answers
Posted by Ansh Dwivedi 1 year, 8 months ago
- 0 answers
Posted by Arun Arun 1 year, 8 months ago
- 2 answers
Posted by Soumyajit Patnaik 1 year, 8 months ago
- 0 answers
Posted by Alok Bhartiya 1 year, 8 months ago
- 2 answers
Posted by Garima Gaur 1 year, 8 months ago
- 1 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Varun Banda 8 years, 3 months ago
Objectives Of Provision Some of the important objectives of maintaining provisions are as follows:
* To Meet Anticipated Losses And Liabilities
Provisions are created for meeting anticipated losses and liabilities such as provision for doubtful debts, provision for discount on debtors and provision for taxation.
* To Meet Known Losses And Liabilities
Provisions are created for meeting known losses and liabilities such as provision for repair and renewals.
* To Present Correct Financial Statements
In order to present correct financial statements and to report true profit and financial position, the business must maintain provision for known liabilities and losses.
0Thank You