If the Conditions for a Provision Are Met but It

question 10

True/False

If the conditions for a provision are met but it is impossible to make a reliable estimate of the amount,the provision should not be recognized in the income statement.

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Definitions:

Benjamin Franklin

An American polymath who was a founding father of the United States.

Certain

Completely confident or sure about a situation or outcome.

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Federal Transfer Payments

Payments from the federal government to individuals, states, or other governmental entities without any requirement for repayment.