Accounting · Provisions and Reserves
In accounting, a provision is created to meet which of the following?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1General expansion and strengthening of financial reserves
- 2A contingent liability that may or may not arise
- 3An unknown or unexpected future liability
- 4A known liability whose exact amount cannot be determined with substantial accuracy✓
Correct answer
A known liability whose exact amount cannot be determined with substantial accuracy
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