state gov Kerala (കേരളം) PSC Divisional Accountant Test Series 2025 Accountancy Depreciation, Reserve & Provision
Which of the following is an INCORRECT difference between provisions and reserve?
1
Provisions are not available for distribution as dividend among shareholders.
2
Provision is appropriation of profits, whereas reserve is charge against profits.
3
Creation of provision is usually necessary, whereas the reserves’ creation depend upon management policy.
4
Provision is created for known liability, whereas reserve is created for unknown liability.