The Term "Provision" as It Is Used in IAS 37

question 40

Multiple Choice

The term "provision" as it is used in IAS 37, is most closely related to what term in U.S. GAAP?

• A) Contingent liability, where the outflow of resources is "remote."
• B) Contingent liability, where the outflow of resources is "probable."
• C) Current liability, where the outflow is difficult to measure.
• D) Reserve for bad debt, where the amount recoverable is "uncertain."

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Definitions:

Structured Society

A society that is organized and governed by established laws, rules, and norms creating a systematic order.

Middle-Class

A social class commonly defined by moderate levels of wealth, education, and professional occupation, situated between the working class and the upper class.

Artisan Husband

A craftsman who is skilled in a particular trade or craft, often running a family business along with his spouse.

Family Meals

Dining experiences that involve members of a household eating together.