Accounting · Provisions and Reserves
If the amount of a known liability cannot be determined with substantial accuracy, then:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A provision should be created.✓
- 2A provision should not be created.
- 3A reserve should be created.
- 4A reserve should not be created.
Correct answer
A provision should be created.
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