What is the meaning of PROVISION?

Generally, is to prepare in advance for an event that is projected to place in the future. In accounting, it is an amount charged against profits for a specific liability (for example: bad debts, depreciation or taxes). A liability may be known, but the amount is often uncertain. This uncertainty may lead to an adjustment in a later income statement once the final amount of the liability is ascertained.

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APABarry Goldsmith. (2010). provision. Retrieved September 20, 2026, from http://smartdefine.org/provision/definitions/1161404
ChicagoBarry Goldsmith. 2010. "provision" http://smartdefine.org/provision/definitions/1161404 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, provision, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/provision/definitions/1161404>.
MLABarry Goldsmith. "provision" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/provision/definitions/1161404>
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