Serious Misstakes & Remarks Flashcards
1
Q
What are Provisions?
A
Provisions are accounting cash set aside for the purpose of telling third parties that we are engaged in businesses that require expenses ahead.
NO CASH MOVEMENT IS DONE THOUGH!
2
Q
What is a Reserve?
A
Reserve is the accumulation of the profit in the balance sheet (net income) to have the equilibrium between assets and liabilities
