Under IFRS, the Term Provision

question 151

Multiple Choice

Under IFRS, the term provision:

• A) Means establishing an asset account.
• B) Refers to expense.
• C) Means establishing a provision for bad debts.
• D) Means establishing a contra-asset account.
• E) Usually refers to a liability whose amount or timing is uncertain.

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Definitions:

Soft Drink

A non-alcoholic beverage typically containing carbonated water, a sweetener, and natural or artificial flavoring.

Automobile Industries

Industries involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Fast-Food Restaurant

A type of restaurant offering quick food service, typically part of a chain operation, and provides minimal table service.